CBN Injects Fresh $100m Into Forex Market

AKAMANU JENNIFER

The Central Bank of Nigeria on Thursday said it would on Friday release the sum of $100m to authorized dealers to meet the requests of genuine customers in the interbank segment of the foreign exchange market.

The release of the forex, according to the apex bank, followed bids from authorized dealers for the amount.

The CBN Director, Corporate Communications Department, Mr Isaac Okoroafor, while confirming the release in a statement said no intervention was made on Thursday in the market.

The statement read in part, “The Central Bank of Nigeria has offered and received bids for $100m from authorized dealers in the interbank market to meet the requests of genuine customers.

“The sales will be settled on Friday, March 17, 2017 and no   intervention   was   made   by   the   Bank   to   meet requests for invisibles on Thursday.”

Okorafor   reiterated   that   the   CBN   would continue   to   make   necessary interventions   in   the   interbank   market   to   meet   all   legitimate   transaction- based foreign exchange demands by customers.

The apex bank had in its last auction sale offered $150m to the   interbank   market   with   the   highest   bid   rate  at  N335 to a dollar while   the marginal rate was N320 to the dollar.

The CBN on Thursday said it had sold more Treasury bills than originally planned at an auction after it lured demand for one-year debt with yields above inflation.

The bank raised N253.8bn at an auction on Wednesday, N40bn more than it had offered to sell.

It offered the one-year bill at 18.55 per cent to raise N166.3bn, against a yield of 18.49 per cent at its last auction and higher than February’s inflation rate of 17.78 per cent.

The central bank has been selling bills with yields below inflation in recent months to curb borrowing costs as it aims to fund half of this year’s forecast budget deficit of N2.36tn ($7.50bn) through the domestic debt market.

Yields on the six-month bill were unchanged from the last sale at 17.20 per cent to fetch N48.5bn, while a N39bn bill due in three month was sold 13.60 per cent against 13.65 per cent previously.

Total demand stood at N216.38bn against N312.44bn at the last sale.

On Thursday, the Debt Management Office also issued more bonds than it originally planned at an auction after slowing inflation rate helped it offer debt at lower yields.

 

 

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