Naira crashes to N454 for 1 dollar in black market on Friday as demand for Dollar increase by investors.
The Naira continued to trade at the same N454/dollar, which it traded at as at yesterday evening. Right now, you can buy dollars at N454/dollar on the parallel market.
The drop in the revenue from crude oil and failure of dollar supply from the Central Bank of Nigeria weaken dollar.
The CBN held its scheduled Primary Market Auction on May 13, selling NT-Bills worth N142.76 billion across the 91-day (N19.78 billion), 182-day (N40.09 billion), and 364-day (N82.89 billion) tenors. The stop rates for the 91-day and 182-day tenors cleared higher at 2.50 percent (+65 bps) and 2.85 percent (+35 bps), respectively, while the stop rate for the 364-day tenor remained unchanged at 3.84 percent.
At the Investors and Exporters (I&E) forex window Naira strengthened by N0.36k as the dollar was quoted at N386.58k on Thursday compared with N386.94k traded on Wednesday, data from FMDQ revealed.
The market opened on Thursday morning with Naira appreciating by N1.27k at an indicative rate of N385.83k compared with N387.10k opened with on Wednesday at the I&E window
The CBN as direct “Investors interested in repatriating their funds from the country are guaranteed to get their money, notwithstanding the drop in the revenue from crude oil.”
In the OMO bills market, average yield across the curve declined by 52 bps to 8.91 percent according to a report by FSDH research.
The Overnight (O/N) rate declined by 3.23 percent to close at 4.40 percent. The Open Buy Back (OBB) rate also declined by 3.40 percent to close at 3.60 percent.
At the money market, the NT-bills market ended the trading session on a positive note on Thursday, with average yield across the curve declining by 1 basis point to close at 2.29 percent.
The development could be attributed to the high demand for the dollar by foreign investors and business owners, whose with dollar payment obligations have accumulated amid a shortage of the currency as result of drop in oil price and supply.