Naira depreciates further


The naira depreciated by 0.1% to NGN394.00/USD at the I&E window on Wednesday but was flat at NGN470.00/USD in the parallel market. The naira had depreciated on Tuesday by 0.4% and 1.1% at the I&E window and parallel market, respectively.


The overnight lending rate contracted by 30bps to 0.6%, in the absence of any significant outflow from the system.

The NTB secondary market traded with bearish sentiments, as the average yield expanded by 9bps to 0.5%. At the recently conducted PMA, the CBN offered bills worth NGN74.84 billion with allotments of NGN10.00 billion of the 91-day, NGN20.00 billion of the 182-day and NGN44.84 billion of the 364-day – at respective stop rates of 0.0350% (previously 0.0480%), 0.5000% (previously 0.5000%), and 1.2100% (previously 1.1390%). Similarly, the average yield at the OMO secondary market expanded by 4bps to 0.6%.

Trading in the Treasury bonds secondary market was bearish, as the average yield expanded by 26bps to 6.2%. Across the curve, average yield expanded at the short (+32bps), mid (+22bps) and long (+23bps) segments, due to profit-taking on the JAN-2026 (+115bps), MAR-2027 (+128bps) and APR-2049 (+106bps) bonds, respectively.