NAIRA APPRECIATES AT INTER-BANK, OFFICIAL MARKETS

By NBF News
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The value of the naira appreciated at both the inter-bank and official segments of the foreign exchange market last week, but was stable at the parallel market segment.

At the close of trading last week, the value of the naira appreciated by 99kobo and six kobo, to close at N151.47 to a dollar and N148.87 to a dollar at the inter-bank and official segments of the foreign exchange market.

The value of the naira was, however, stable at the parallel market at N153.50 to a dollar.

According to the weekly money and capital market report of FSDH Securities, the inter-bank rates dropped significantly last week, due to the release of some funds to the system through the Federation Account Allocation Committee in May.

A total of N415.16bn and treasury bills worth N35bn also hit the system.

Available data indicated that the 7-day Nigerian Inter-bank Offered Rate closed the week at 2.5 per cent, indicating 6.08 per cent decrease from the previous week's figure of 8.58 per cent.

The 90-day NIBOR closed at 7.29 per cent, down by 3.5 per cent, from the previous week's figure of 10.79 per cent.

At the 91-day treasury bill auction, a total of N5.11bn worth of securities were offered and sold and the bill was 418.47 per cent subscribed, as N21.37bn bid was received.

It was issued at a discount rate of 1.60 per cent. At that segment, a total of N5.11bn worth of matured bills was repaid into the system, bringing the transaction to a nil position.

At the 182-day treasury bill auction, N30bn worth of securities were offered and sold and it was 308.44 per cent subscribed as N92.53bn bid was received.

It was issued at a discount rate of 3.12 per cent.

Also, a total of N30bn matured bills was repaid into the system, thus bringing the transaction to a nil position in that segment.

At the forex auction held on Monday, the Central Bank of Nigeria offered $450m while $350.84m was demanded, resulting in a subscription of 77.96 per cent.

On Wednesday, the CBN offered and sold $450m, but $382.99m was demanded, resulting in a subscription of 85.11 per cent.