CBN Reduces Dollar Supply As Naira Gains 0.2%

 

The Central Bank of Nigeria (CBN) reduced the value of United States dollar offered at the WDAS to $200 million at yesterday’s auction following reduced demand for the greenback.
The $200 million offered yesterday was the lowest amount offered at the bi-weekly auction in the last two six weeks. The last time the apex bank offered $200 million was on May 23, 2012.
The naira gained a marginal 0.2 per cent at the official window closing at N155.87/dollar compared to N155.90/dollar at last Wednesday’s while it remained flat on the interbank market. The naira traded at 160.90 naira to the dollar in thin trade that saw some lenders selling dollars at the interbank.
Despite the reduced amount on offer, the CBN sold $163 million at 155.87 to the dollar compared with $251 million sold at 155.90 naira to the dollar last Wednesday.
“The market was quiet today with demand for the dollar dropping off from what we are used to seeing,” one dealer said.
Nigeria’s currency firmed 1.2 per cent last week, after a surge of inflows from foreign investors positioning to buy treasury bills and the central bank’s dollar sales to banks.
Traders said an additional $200 million sold by Nigeria’s “bad bank” AMCON to some lenders from its debt recovery efforts also provided support for the local currency.