The naira yesterday firmed against the dollar at the autonomous market by N1 to close at N318/$ compared with N319/$ the previous day.
It closed stable at N320 against the dollar at the parallel market and N197/$ at the Central Bank of Nigeria’s (CBN) clearing rates at the interbank foreign exchange market.
The naira is expected to stay unchanged on the parallel market and the official exchange next week, as the economy slows and demand for foreign exchange eases after President Muhammadu Buhari’s delayed signing of the 2016 budget.
“Some important decisions on investment and economic issues are being held back because of the continued delay in the implementation of the fiscal policy for this year,” one dealer told Reuters.
Yields on Nigerian short-dated treasury bills rose significantly at an auction on Wednesday, where the central bank sold a total of N167.51 billion ($841.76m) worth of debt with maturities ranging between three months and one year.
The central bank said it sold N36.78 billion of 3-month paper at 7.88 percent yield, about 1.78 percentage points higher than at the last auction on April 6.
A total of N35 billion worth of the 6-month treasury bill was sold at 8.99 percent against 8.69 percent at the previous auction, while N95.73 billion of the 1-year treasury bill was sold at 10.24 percent compared with 9.48 percent previously.
Investors demanded a total of N253.19 billion against 445.86 billion subscriptions at the last auction.
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