Naira firms N1.47k against dollar as CBN sales $300m - jetlinking.blogspot.com

Naira firms N1.47k against dollar as CBN sales $300m

The naira on Monday strengthened against the US dollar gaining N1.47 kobo at the interbank market following the Central Bank of Nigeria (CBN) intervention of $300 million.
The local currency Monday closed at N162.60/$ compared to N164.07/$ traded last week Friday, data from the Financial Markets Dealers Association (FMDA), have shown.
Analysts attributed the naira appreciation to increased dollar supply by the CBN. The CBN Monday offered and sold $300 million to 20 deposit money banks at its twice weekly Wholesale Dutch Auction System (WDAS) at the N155.76/$.
However, naira remained stable at official, bureau de change and parallel market closing at N155.76/$, N164.50/$, and N165.00/$ respectively.
Analysts at Cowry Asset Management limited, had anticipated that naira would stabilise this week given likely increase in crude export consequent upon the lifting of force majeure on Brass Oil by Eni and relatively stable oil prices.
The money market was awash with liquidity as the Nigeria Interbank Offered Rates (NIBOR) dropped across tenor buckets.
Consequently, overnight call tenor went down from 19.00 percent on Friday last week to 13.16 percent. Similarly, 7 days and 30 days tenors dropped to 13.37 percent and 14.04 percent from 19.29. percent and 19.54 percent respectively.
The analysts had said this week, treasury bills worth N147.11 billion will mature on Thursday 12, September. The bills will consist of: 146-day bills worth N44.29 billion; 147-day bills worth N21.11 billion; and 177-day bills worth N81.71 billion.
The injections will largely neutralize the combined outflows via auctioned bonds and foreign exchange sales.
By: HOPE MOSES-ASHIKE