Naira Depreciates slightly despite $210m FX intervention by the CBN


Monday January 29, 2018/9.30pm/Zedcrest Capital

***CBN Injects $210m into Forex Market***

***Foreigners Pile Into Nigerian Stocks, New York ETF as Oil Climbs***

Proshare Nigeria Pvt. Ltd.


The bond market remained scantily traded in today’s session, with slight sell on the 26s and 27s bond offset by some buys on the short-end of the curve. Yields consequently closed flat on the average, as market players preferred to stay square on their positions. We expect this trend to persist in the near term on the backdrop of a relatively lacklustre demand for bonds.


Proshare Nigeria Pvt. Ltd.

Treasury Bills

The T-bills market was also scantily traded, with continued local and offshore client demand for the OMO auction by the CBN. The CBN sold a total of N84.30bn of the 248-day bill offered at 14.40%. There was however no bids for the shorter tenured bill, as in the previous session. We expect slight buying interests in the market tomorrow, especially on the long end of the curve.


Proshare Nigeria Pvt. Ltd.

Money Market

The OBB and OVN rates inched slightly upwards to 5.83% and 6.58%, on the backdrop of the OMO T-bill (N84.30bn) and Wholesale FX sales ($210mn) by the CBN. System liquidity is however estimated to remain buoyant at c.N80bn positive. We expect inflows from retail FX refunds to further moderate cost of funds in tomorrow’s session.

Proshare Nigeria Pvt. Ltd.


FX Market

The CBN Official spot rate depreciated by 0.02% to N305.70/$, from its previous day rate of N305.75/$. This was despite the CBN’s intervention of $210m in the Wholesale, SME and Invisibles segment of the Interbank FX market. The CBN’s external reserves is however recorded to have improved by 1.76% to $40.33bn as at 25th January 2018.

Turnover in the Investors and Exporters’ FX Window fell by 96.14% to $334million from its YTD high of $655million recorded in the previous session. The Market’s spot rate also depreciated marginally by 0.01% to close at N360.37/$ from N360.35/$. There was an intraday high of N361.50/$ and a low of N350.00/$, with the bulk of trades consummated between N355.00/$ and N361.00/$.

Rates in the Unofficial market however appreciated by 0.06% to N363.10/$

Proshare Nigeria Pvt. Ltd.

Related News

1.       Decent Start to the Year for the DMO

2.       Proposed USD2.5billion Eurobond Issuance in Q1 2018

3.       First FGN Bond Auction for the Year Oversubscribed

4.       Slight Rally on Bonds on Prospective Eurobond Issuance by the DMO

5.       Summary of FGN Bond Auction Results for January 2018

6.       Bond Auction clears 14bps higher, with total sale of N110bn by the DMO

7.       Weak Trading Sentiments on Bonds ahead of Auction

Related News