Naira depreciates as $697m forwards mature this week

  |   Nigeria News
  • Interbank interest rate hit 22%

  • We don’t run any business — AMCON

  • The naira depreciated in all the segments of the foreign exchange market last week due to shortage of dollars.

  • Last week the naira depreciated in the interbank spot market by Seven percent to N283.37 per dollar from N282.02 per dollar the previous week.

  • Analysts at Afrinvest however stated, “The fulfilment of this commitment is expected to stoke investors’ confidence in the operations of the interbank market going forward.” Meanwhile, the new foreign exchange rate regime received a major boost last week, with the CBN and Stanbic IBTC sealed a $60 million Naira-Settled Futures at N210 per dollar with 10 months tenor ending on April 26th, 2016.

  • Interbank interest rate hit 22%Interbank interest rates rose to double digits last week closing above 22 percent due to scarcity of funds occasioned by treasury bills sales by the CBN and sale of FGN Bonds by the Debt Management Office (DMO).

  • Interest rate on Overnight lending rose by 13.4 percent to 22.8 percent, while interest rate on Collateralised lending or Open Buy Back (OBB) also rose to by 11.8 percent to 20.8 percent.

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