The Naira weakened at the parallel market on Thursday against the dollar, GBP and the Euro, reflecting increased pressure on the local currency and possibility of further slop.
However, the Naira remained flat at the interbank market closing at N 305 per Dollar largely driven by the daily intervention sales by the Central Bank of Nigeria (CBN). It equally closed flat at the interbank market against the GBP and the EUR to berth at N383.71 and N328.34.
Meanwhile, at the parallel market, the Naira weakened by -0.6 per cent,-0.8 per cent and -0.2 per cent against the USD, the GBP and the EUR to settle at N493 per Dollar, N595 per GBP and N506 per EUR. In the light of the developments at the interbank and parallel market, experts have speculated that pressure on the Nigerian Naira would intensify in the coming weeks as business activities resume fully.
Transaction in the debt instrument market yesterday reflected that with the exception of the 1month NIBOR rate which contracted by 8bps to berth at 15 .91 per cent , the 3month and the 6month NIBOR rates expanded by 35bps and 72bps to settle at 17.87 per cent and 22.31 per cent respectively.
Analysts expect improvement in system liquidity from.N55b Open Market Operation (OMO) maturity which impacted the system on Thursday. This, experts maintained would likely lead to contraction in rates in the absence of OMO auction by the CBN.
Irrespective of the N50B OMO that matured and impacted the system yesterday, yields on FGN bonds expanded across all tenors.
The growth across the yield tenors, experts maintained, may not be unconnected with lack of clarity regarding direction of rates in the New Year. Consequently, yields on the 5yr, the 7yr and the 10yr benchmark bonds inched up by 8bps, 9bs and 3bps to settle at 15.96 per cent, 15.90 per cent and 16.37 per cent.