CBN Auctions $1 billion In One Week

CBN Auctions $1 billion In One Week

Ayomide, Lagos

The Central Bank of Nigeria (CBN) has in the last seven days, offered $1.01 billion at the inter-bank foreign exchange market to meet the requests of customers in the various segments of the market.
This is coming just as it offered $195 million yesterday, in efforts to sustain plans to achieve rates convergence, although a huge part of the amount were structured in 30-day and 60-day tenors.

Consequently, parallel market exchange rate gained N3 to N364 per dollar, against N367 it trended throughout last week, while inching closer to all rates.Last week, a mix of $831.5 million foreign exchange (about N254 billion at N305.75/$) and Open Market Operation (OMO) auctions reduced quantity of naira in circulation and stabilised exchange rate across segments.

A breakdown of today’s intervention revealed that the apex bank offered $100 million to authorised dealers at the interbank wholesale window, while it allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) window.

The invisibles segment, made up of Business/Personal Travel Allowances, school fees and tuition, and medicals, was allocated $45 million.Confirming the figures in the latest round of intervention, the Acting Director in charge of Corporate Communications, Isaac Okorafor, also announced a retail option submitted yesterday, adding that the results would be released subsequently.