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+--- Thread: External Reserves Rise As Naira Remains Stable (/showthread.php?tid=17189)
External Reserves Rise As Naira Remains Stable - Edoman - 05-13-2019
External Reserves Rise As Naira Remains Stable
Nigeria’s external reserves has continued to accrue growing by $51.32 million in the first few days of May as it stood at $44.843 billion as at May 8, 2019 according to data from the Central Bank of Nigeria (CBN) even as the naira remained stable across board.
The value of the naira had been stable on all the various markets selling at N360 to the dollar on the streets and at Bureau de Change end of the market as the CBN continued to manage demand with its interventions in the foreign exchange market.
Analysts believe that the sustained increase in foreign portfolio buying interest in the fixed income market is largely responsible for the accretions to the reserves although stable oil prices and output have continued to favour increased forex earnings.
The CBN in continuance of its weekly sales, last week, injected $205 million into the market to support the currency.
The wholesale segment of the market was offered $100 million while the Small and Medium Enterprises (SMEs) segment received $55 million. Similarly, customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were allocated $50 million. Meanwhile, the CBN is expected to hold Open Market Operations (OMO) auctions this week, as instruments worth N140.9 billion are expected to mature.
A total of N33.8 billion of primary market maturities is expected to hit the market this week alongside OMO maturities of N107.1 billion. Consequently, it is expected that yields across markets will close higher week-on-week.
In the Treasury Bills secondary market, performance was mixed as rates across benchmark tenors trended lower on three of the five trading days.
The week, started on a bullish note due to the high system liquidity, as average rate across tenors settled at 12.7 per cent. Last week, OMO maturities worth N467.9 billion had hit the market propping up liquidity in the system.
Investors continue to anticipate lower short-term rates as revealed in the OMO auctions held on Thursday. 91-day, 175-day and 336-day instruments were on offer with range of bids of 11.65 to 12.84 per cents as all tenor instruments were oversubscribed.
Read More at: https://leadership.ng/2019/05/13/external-reserves-rise-as-naira-remains-stable/?utm_source=rss&utm_medium=rss&utm_campaign=external-reserves-rise-as-naira-remains-stable