Traders said local currency gained 0.08 naira at the Investors’ and Exporters’ Window on Thursday to close at 361.64 to the dollar.
The gain in the market was attributed to improved liquidity as "supply of funds outweighed demand in the market."
The naira also remains stable on the parallel market at 361 to the dollar on Friday, traders said.
The indications that more offshore investors are also coming back manifested at the treasury billion auctions as the bulk of traded short-dated paper sold at the Open Market Operations (OMO) were lapped up by foreign investors taking advantage of attractive yield in the market.
The Central Bank of Nigeria (CBN) sold 321 billion naira worth in the 1-year treasury bill at an auction, where it had initially offered to sell 250 billion naira.
Also, the bond market traded significantly bullish note while yields decline by nine basis points due to increase demand on the mid to long end of the curve from both local and offshore investors.
"Market sentiment has turned bullish since the January FGN Bond auction, with yields having compressed by 30 basis points to date," a dealer said.
Many offshore investors have stayed on the sideline since the beginning of the year as political risk and uncertainty around the country's forthcoming election kicks in.
"We expect the I&E market to remain stable as more fund brings in dollars to investors on the local debt market even at the eve on the election.
Yields on Nigeria benchmark five-year bond at the last auction close at 15.25 percent while yields on the one-year treasury bill traded around 17 percent on Thursday.
The CBN has been luring investors with higher yields on local bond as part of measures to improve dollar liquidity in the market and support the local currency.
The indications that more offshore investors are also coming back manifested at the treasury billion auctions as the bulk of traded short-dated paper sold at the Open Market Operations (OMO) were lapped up by foreign investors taking advantage of attractive yield in the market.
The Central Bank of Nigeria (CBN) sold 321 billion naira worth in the 1-year treasury bill at an auction, where it had initially offered to sell 250 billion naira.
Also, the bond market traded significantly bullish note while yields decline by nine basis points due to increase demand on the mid to long end of the curve from both local and offshore investors.
"Market sentiment has turned bullish since the January FGN Bond auction, with yields having compressed by 30 basis points to date," a dealer said.
Many offshore investors have stayed on the sideline since the beginning of the year as political risk and uncertainty around the country's forthcoming election kicks in.
"We expect the I&E market to remain stable as more fund brings in dollars to investors on the local debt market even at the eve on the election.
Yields on Nigeria benchmark five-year bond at the last auction close at 15.25 percent while yields on the one-year treasury bill traded around 17 percent on Thursday.
The CBN has been luring investors with higher yields on local bond as part of measures to improve dollar liquidity in the market and support the local currency.
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