• Tuesday, May 28, 2024
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CBN sells dollars at N162.5, breaches its band

Nigeria’s opaque external reserves drains confidence in FX reform

The Central Bank of Nigeria (CBN) auctioned dollars at N162.50 at its official forex window, outside its preferred band of 150-160 and ahead of a key interest rate decision on Tuesday.

READ ALSO: CBN removes restrictions on refinancing of non-member mortgage lenders by MRC

It the second time in a row it has auctioned the currency outside a band it burst out of in May. It auctioned the greenback at 158.41 to the dollar at its previous session.

The naira, which is down 9 percent this year, hit a record low at the interbank window on Monday on concerns that a slide in global oil prices could undermine the central bank’s efforts to keep defending the currency, dealers said.