CBN Sells US Dollar at Higher Rates to Nigerian Banks
The Central Bank of Nigeria (CBN) sold additional US dollars to deposit money banks ahead of preparation towards its automated FX trading platform in December. The auction sales is the second in the week, analysts said.
This FX auction totaling $54 million boosted liquidity in the official window and helped the naira to strengthen against the US dollar on Thursday. “Yesterday, the CBN remained active in the FX market, selling $54 million to banks between the rates of N1,655 and N1,660,” TrustBanc Financial Group revealed in a note.
MarketForces Africa reported that the authority sold $48 million to an authorized dealer bank earlier in the week to ease US dollar demand pressures. in the official FX market. CBN FX intervention spot rate pricing has changed from highly subsidised to near going market rate.
In the currency market, the naira gained N15.97 to close at N1644.86 per US dollar. The exchange rate also improved by N5 to N1,745.00 in the parallel markets.
Consequently, the spread between the two markets widened to 5.78% from 5.07%, according to analysts. “We believe the sizeable gain in the official market was supported by sales from foreign portfolio investors (FPIs) in preparation for the anticipated OMO auction,” TrustBanc Financial Group said in a note. FG Partners MIKTA Group to Bolster Nigerian Economy
