• Wednesday, February 21, 2024
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Naira firms against dollar as CBN sells $399.9m


Naira yesterday strengthened against the US dollar gaining N0.19k at the Nigerian Interbank Forex (NIFEX) market as the Central Bank of Nigeria (CBN) intervened with a total of $399.9 million.

The local currency yesterday closed at N159.52/$ as against N159.72 traded the previous day, data from Financial Markets Dealer Quotations (FMDQ) have indicated.

At the Foreign Exchange (FX) market, naira gained 20 kobo against the dollar as it closed at N159.60/$ compared to N159.80/$ the previous day.

Analysts attributed the naira appreciation to increased supply meeting the demand for the greenback by the end users.

The CBN yesterday offered a total of $400 million but sold a total of $399.9 million to some deposit money banks at its bi-weekly Retail Dutch Action System (RDAS) window at the rate of N155.72$.

Victor OFILI, research desk, Cowry Asset Management Limited had anticipated an appreciation of naira following the CBN’s forex sale.

Interbank rates at the money market yesterday, dropped slightly across tenor buckets by 1.54 percent from 11.65 percent the previous day to 11.47 percent.

Consequently, Nigerian Interbank Offered Rates (NIBOR) for 7 days tenor went down to 10.54 percent from 10.91 the previous day. In the same way, 30 days, 60 days and 90 days tenors dropped from 11.45, 11.70 and 11.95 percent the previous day to 11.12, 11.41, and 11.70 percent respectively.