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Money market rates drop slightly across all tenors …As Naira weakens further in parallel market

Naira

As pressure on the local currency intensified within the week, the Nigerian Naira on Thursday in the parallel market depreciated by -0.6 per cent and -0.7 per cent against the USD and the GBP to berth at N495 and N497 respectively while it closed flat against the EUR to settle at N515.
However, money trading at the interbank market on Thursday saw to the growth of the Naira against the dollar, the Naira appreciated by +0.16 per cent against the USD to close at N304.50. In the same market, the Naira however dropped by -0.24 per cent and -0.32 per cent against the GBP and the EUR to settle at N382.49 and N331.79 respectively.
With the intensification of demand supply gap, analysts have predicted that the pressure on the local currency would linger leading to higher forex value against the Naira, just as activity in bond market session would be influenced by liquidity levels.
Meanwhile, with system liquidity closing at N56billion, money market rates on Thursday declined slightly across all tenors .The 1month, the 3month and the 6month Nigerian Interbank Order Rates (NIBOR) contracted by 50bps, 90bps and 90bps respectively to settle at 16 .23 per cent, 17.58 per cent and 21.35 per cent respectively.
The bond market which closed for the week on Thursday, closed the week on a bullish note due to increased demand from investors. Consequently, yields contracted across all tenors.
Yields on the 5yr year, the 7yr and the 10yr benchmark bonds shrank by 7bps, 8bps and 9bps to settle at 16.10 per cent, 16.06 per cent and 16.58 per cent respectively.

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