• Thursday, June 20, 2024
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CBN’s $200m sale fails to lift naira at inter-bank

Brewing up a mess in Nigeria with a controversial Naira rebrand

The expectations of many foreign exchange users were not met as naira pressure persisted on Wednesday even after the Central Bank of Nigeria’s (CBN) intervention.

The CBN on Wednesday offered about $200 million and sold the same to some deposit money banks at the rate of N168/$ at its twice-weekly Dutch Auction System (RDAS).

Consequently, the naira on Wednesday depreciated by N2.30k/$ or 1.2 percent against the dollar at the inter-bank market foreign exchange market.

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After trading on Wednesday, the local currency closed at N192.40k/$ compared to N190.10k/$ traded the previous day at the inter-bank market, data from Financial Markets Dealers Quotations (FMDQ) revealed.

At the parallel market and bureau de change segment, naira remained stable at N210.50k/$ and N209/$, respectively.

The CBN had on Tuesday announced its move to sell an additional $30,000 to interested BDCs in a move to shore up liquidity in the foreign exchange market as naira continues to face intense pressure on excessive dollar demand.