CBN removes N379/$1 exchange rate from website
The Central Bank of Nigeria has removed the exchange rate of N379/$1 from its website homepage conforming with the bank’s policy that the Nigerian Autonomous Foreign Exchange (NAFEX) rate is now the default reference exchange rate for official and legitimate transactions. Since the Central Bank last adjusted the exchange rate in August 2020, it has retained the exchange rate of N379/$1 on its website homepage which in the past, represented the official exchange rate.
Nigeria responsible for over 40 percent diaspora remittances in Sub Saharan Africa
The World Bank says Nigeria is responsible for over 40 percent of diaspora remittances in Sub Saharan Africa (SSA). In a statement on Wednesday, the Washington-based financial institution said remittances to SSA declined by an estimated 12.5 percent in 2020 to $42 billion. The decline was almost entirely due to a 27.7 percent decline in remittance flows to Nigeria, “Remittances to Sub-Saharan Africa declined by an estimated 12.5 percent in 2020 to $42 billion,” the statement read.
FX Market
The naira weakened against the U.S dollar at the Investors & Exporters (I&E) window of the foreign exchange market on Tuesday as foreign exchange supply rose significantly. However, the local currency remained stable for two successive sessions at the parallel market.
Treasury Bills
The Nigerian Treasury Bills (“NT-Bills”) secondary market resumed last week on a quiet note as activities remained minimal for most trading sessions of the week. However, by Wednesday the overall sentiment in the market turned slightly bearish due to tightened liquidity which furthered deepened to N167.9bn (negative as at Thursday, 6th May, 2021). Consequently, average yield across all maturities inched 1bp higher week-on-week (W-o-W) to settle at 4.86% from 4.85% the previous week.
FGN Bonds
The FGN bond secondary market sustained its bearish momentum last week, as expected optic in inflation and liquidity levels which was N407.5bn (negative as at Wednesday) continued to affect activities in this space. Consequently, average yield across all maturities advanced 44bps W-o-W to settle at 12.37% from 11.93% the previous week.
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