Nigeria’s inflation rate drops to 17.01% in August 2021, 5th consecutive decline
According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate in the month of August 2021 dropped to 17.01% from 17.38% recorded in July 2021. This represents the fifth consecutive decline in the rate of inflation recorded in Nigeria. The latest figure is 0.37% points lower than what was recorded in the previous month. Meanwhile, on a month-on-month basis, the headline index increased by 1.02% in August 2021, this is 0.09% higher than the rate recorded in July 2021 (0.93%).
The bullish run in the Nigerian Treasury Bills (“NT-Bills”) secondary market persisted last week, on the back of sustained positive liquidity levels (averaging N60.7bn for the week) as N119.1bn and N138.2bn worth of Open Market Operation (“OMO”) bills and NT-Bills maturities respectively hit the system during the course of the trading week. Consequently, the average yield across all maturities shed 14bps W-o-W (from 4.71% the previous week to close at 4.58%).
At the FGN bonds secondary market, performance was mixed as investors adjust their portfolios with suitable instruments across the curve. Subsequently, the average yield across the market slightly advanced 5bps to close at 11.09% from 11.04% the week before. In more detail, sell-offs were recorded at the long end of the curve as the average yield gained 18bps W-o-W to close at 12.48%.
Naira fell profoundly against the U.S. dollar at both the official and unofficial market segment on Thursday. According to abokiFX.com, the local unit closed at N570 per $1 on Thursday. This represents a N8.00 or 1.42 per cent devaluation from the N562 rate it exchanged on Wednesday. It was the biggest single day plunge in several months. The currency has maintained continuous decline at the parallel market for eight straight trading days.
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