Nigeria’s inflation rate drops to 17.38% in July 2021
Reports from According to the recently published consumer price index report by the National Bureau of Statistics (NBS), Nigeria’s inflation rate dropped further in July 2021 to 17.38% compared to 17.75% recorded in June 2021 marking the 4th consecutive decline in the inflation rate. It is worth noting that despite the subtle decline recorded in the review month, prices of goods and services increased significantly, as the CPI surged by 17.38% compared to the corresponding period of 2020.
Treasury Bills
The Nigerian Treasury Bills (“NT-Bills”) secondary market witnessed a sustained bullish run last week as funds that lost out of the Primary Market Auction (“PMA”) were positioned in the secondary market. In addition, system liquidity levels improved (N26.1bn as at Friday) as N51.5bn worth of matured NT-Bills hit the market on Thursday.
FGN Bonds
The FGN Bonds secondary market sustained its bullish trend as buying interests in the market continue to force yields downwards. As a result, the average yield in the market shed 38bps to close 11.56% from 11.94% the previous week. Specifically, average yield in the short-end of the curve fell the most, contracting 62bps W-o-W (Week-On-Week) to settle at 9.30% from 9.92%.
FX Market
According to abokiFX.com, naira fell against the U.S. dollar at the black market to close at N520.00 per $1 as against the N517.00 rate it traded last week. This represents a N3.00 or 1.00 per cent devaluation from the N517.00 per $1 it exchanged hands with the greenback from the previous session. The currency however, appreciated slightly against the U.S dollar at the official window on Thursday after recording a marginal loss in the previous session on Wednesday.
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