CBN Sells $195m, Naira Recovers, Closes At N364/Dollar

By Nse Anthony-Uko
(Sundiata Finance) – The Central Bank of Nigeria on Tuesday intervened in the inter-bank foreign exchange market with the sale of $195m.

This came just as the naira appreciated to 364 per United States dollar at the parallel market, up from the 365/dollar recorded on Friday.

Figures released by the CBN showed that the regulator offered the total sum of $100m to the wholesale segment, while the Small and Medium Enterprises segment received the sum of $50m.

The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance, among others, received $45m.

The Acting Director, Corporate Communications Department at the Bank, Mr. Isaac Okorafor, while confirming the figures, said the CBN the sale was in continuation of the central bank’s efforts to sustain forex liquidity in the country.

According to him, the bank has remained determined to achieve its objective of rates convergence, hence the unrelenting injection of intervention funds into the foreign exchange market.

The CBN had last week intervened in the various segments of the Forex market with the sum of $698.5m.

The local currency toward the end of September has been hovering around N365 and N369/dollar at the parallel market.

Analysts said the local unit would continue to trade between N360/dollar and 370/dollar in coming months following the Central Bank of Nigeria (CBN) weekly intervention.

But the local currency, fought had to retained the rates to the dollar and Pound sterling at N485, while appreciated to N427 against the Euro, compared to N430 it sold on Monday at the parallel market. At the Investors & Exporters Window (IEFX) as the daily turnover moved to $340.07 million on Tuesday

The IEFX window closed Tuesday trading activities at N360.40 to the dollar, from N359.76 it settled on Monday. However, the Federal Government had announced plans to sell N130.37billion worth of treasury bills (T-Bills) at an auction on October 4 (Today).

The CBN will offer N28.69billionn in three-month paper, N33.49billion in six-month bill and N68.18billion in one-year note. Results of the auction will be announced on the same day. The CBN issues T-Bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

The FG had raised N243.7billion at a bond auction last Wednesday, almost double the amount it offered, as local funds and foreign investors piled into longer tenors to lock in yields. The Debt Management Office put N135billion worth of bonds maturing in 2021, 2027 and 2037, on offer.

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