Naira Firms Against Dollar as CBN Sells $299.5m

The naira on Monday strengthened slightly against the US dollar gaining N0.03 kobo at the interbank market to close at N159.93/$ as against N159.97/$, data from the Financial Markets Dealers Association (FMDA) have indicated.

Analysts believe that the naira appreciation may have been as a result of the Central Bank of Nigeria (CBN)’s intervention at the Retail Dutch Auction System (RDAS) window.

The CBN on Monday offered $300 million but sold a total of $299.5 million at N155.90/$ to 20 deposit money banks at its twice weekly RDAS.

At the official market Monday, the naira weakened against the US dollar losing N0.09 kobo as it closed at N155.90/$ compared to N155.81/$.

However, the local currency remained stable at the bureau de change and parallel market closing at N162.00/$ and N163.00/$ respectively.

Analysts had anticipated that there would be more stability of naira this week following likely improvement in supply occasioned by the re-opening of Trans Niger crude oil pipeline by Shell Petroleum Development Company of Nigeria Limited, having completed its repairs.

Money market yesterday experience liquidity squeeze as the Nigerian Interbank Offered Rates (NIBOR) increased slightly across tenor buckets except call tenor which remained stable.

SOURCE

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