FBNQuest FI-FX Daily Watch 06 April 2018
Opening market liquidity on Thursday was N716bn (positive), boosted by a substantial OMO maturiy. Interbank rates closed within a range of 4%-9%. At an OMO auction yesterday, the CBN raised N759bn from the sale of 91-day and 245-day paper at lower stop rates of 12.50% and 14.30% respectively. On the secondary market for NTBs, there was an uptick in yields for selected maturities.
The CBN’s daily fx intervention was again US$0.5m at N305.10. Turnover at the NAFEX soared from US$170m on Wednesday to US$572m. Indicative rates ranged from N315 to N361. The USD rose to a three-week high against the JPY on Thursday. Additionally, equity markets jumped as fears eased of a trade war between China and the US after Washington expressed a willingness to negotiate.