Financial market analysts have predicted that the naira will appreciate against
Dollar demands at the Retail Dutch Auction System (RDAS) depressed last week as reflected in low subscription by bidders.
The Central Bank of
A total of
However, due to the decrease in demand for the greenback by importers, the naira firmed at interbank foreign exchange market.
Thus, the local unit appreciated marginally 20 kobo to close at N162.085 to a dollar, from N1623.65 to a dollar the preceding week. At the Bureau De Change (BDC) segment, the nation's currency closed flat at N167 to a dollar.
"While there is high expectations that the rebased national accounts, in addition to stable forex reserves and CBN's tight monetary stance, would help support the naira, it remains volatile due to structural imbalances between supply and demand," a report by
Bond market According to a report by
"On the second trading day however, the market experienced huge sell-offs on the back of profit taking and liquidity provisions ahead of Wednesday's treasury bills Primary market Auction.
"This pattern was sustained on Wednesday due to resurgence in demand from local institutional investors but reversed on Thursday," it explained.
Yields in the 9.2% FGN
The frequent treasury bills auctions tend to offset market dynamics as investors reassign portfolio's in either direction, the report added.
Treasury bills auction worth N168 billion was subsequently auctioned during the week mopping up liquidity significantly.
The Call and OBB rates both opened the week at 11.4 per cent, declining 81 basis points and 111 basis points to close at 10.6 per cent and 10.2 per cent respectively.
The 90-day, 120-day and 365-day rates depreciated the most by 32 basis points, 15 basis points and 24 basis points to close 10.9 per cent, 11 per cent and 12 per cent.
However, a report by
The inter-bank secured lending (Open Buy Back) fell to 10.38 per cent to underscore current market liquidity status.
"The new Governor's forward guidance to a low interest rate environment showed a clear departure from the Sanusi era of a significantly tight policy stance.
"However, assuming no significant change to key indicators, the monetary policy rate will likely be held at 12 per cent through the third quarter of 2014 before any cuts are made due to reasonably strong liquidity growth, fiscal expansion prior to the
Furthermore, it stated that increased demand of
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