At the Foreign Exchange (Forex), the Nigerian currency closed at N165.70 last week Tuesday, but firmed 0.18 per cent to N165.40 against the US dollar on Wednesday, after two multinational oil companies sold the greenback on the interbank market.
Dealers said the local unit of ExxonMobil sold $50 million, while French oil firm, Total sold $88 million, to boost dollar liquidity on the interbank market.
The Central Bank of Nigeria (CBN) offered a total of $500 million on Monday, October 27, 2014 and sold $498.947 million
at the marginal bid rate of $155.76. 23 banks participated in the auction. It offered a total of $400 million and $399 million at the
marginal bid rate of $ 155.76 with 22 banks participating.
Dealers expect the naira to stabilise within the current level as more energy companies sell dollars as part of their month-end sale.
The naira has been under pressure over the past five weeks because of weaker oil prices.
Assets Management Corporation of Nigeria (AMCON) retired about N867 billion ($5.24 billion) worth of bonds on Friday.
Yields on the benchmark 10-year bond fell last week after local pensions increased demand for bonds. Local pensions are expected to play a big role in the market, with most offshore investors remaining on the sidelines due to falling global oil prices and a decline in the value of the naira currency.
“We see an increase in demand from local pensions and other assets managers on account of the huge liquidity in the market, arising from the retirement of matured AMCON bond,” one dealer said.
Dealers said yields on the 2024 bond dropped to 12.56 per cent last week from 12.62 per cent penultimate week, while 2016 yields fell to 12.12 per cent against 12.58 per cent. The 2022 paper fell to 12.57 per cent from 12.66 per cent week before last.
Source : Tribune