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CBN sells N44bn foreign exchange in January
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Data from the apex bank indicates that the amount sold, which was 23.09 percent lower than the $480 million (N57.6 billion) offered, was sold mostly to bureau de changes. Banks have been sourcing and obtaining foreign exchange more from independent sources, mainly oil companies.
However, last month’s sales represent an increase of 48.3 percent over the $249 million (N29.88 billion) sold in the previous month.
Results of the WDAS for the last week of the month show that the apex bank had $60 million each on offer at the two sessions held Monday and Wednesday but only sold $10 million and $17 million to banks’ BDCs.
The naira remained stable at the interbank foreign exchange market, trading between 117.72 and 117.75 against the dollar. There were no sales by oil multinationals.
Meanwhile, lending rates in the interbank climbed to 10.16 percent on average last Friday from 9.66 percent a week earlier after the state oil company recalled some deposits from banks, traders said.
The secured Open Buy Back (OBB) was flat at 9.0 percent, overnight closed at 10.5 percent compared to 9.5 percent, while call money climbed to 11.0 percent from 10.5 percent.
Bankers said despite the release of 183 billion naira ($1.55 billion) in budgetary allocations to government agencies last week and the repayment of 120 billion naira in matured Treasury bills on Friday, the market remained short of cash.
“The market has not really recovered from the massive cash mop-up by the central bank in late December despite the disbursement of budgetary allocation last week and the repayment of matured bills this week,” one dealer said.
Dealers insisted that many banks again resorted to borrowing from the central bank to fund their operations after the Nigeria National Petroleum Corporation withdrew large sums from the banks.
Nigerian banks depend largely on the monthly budgetary allocations and government agencies to fund their operations.
A banker said, he estimated that the interbank market was short by about 340 billion naira due to the deposit withdrawal and aggressive mopping-up by the central bank, late December.
The regulator is keen to curb growing money supply and rein in inflation, which rose to 6.6 percent in December from 5.2 percent a month earlier.
However, last month’s sales represent an increase of 48.3 percent over the $249 million (N29.88 billion) sold in the previous month.
Results of the WDAS for the last week of the month show that the apex bank had $60 million each on offer at the two sessions held Monday and Wednesday but only sold $10 million and $17 million to banks’ BDCs.
The naira remained stable at the interbank foreign exchange market, trading between 117.72 and 117.75 against the dollar. There were no sales by oil multinationals.
Meanwhile, lending rates in the interbank climbed to 10.16 percent on average last Friday from 9.66 percent a week earlier after the state oil company recalled some deposits from banks, traders said.
The secured Open Buy Back (OBB) was flat at 9.0 percent, overnight closed at 10.5 percent compared to 9.5 percent, while call money climbed to 11.0 percent from 10.5 percent.
Bankers said despite the release of 183 billion naira ($1.55 billion) in budgetary allocations to government agencies last week and the repayment of 120 billion naira in matured Treasury bills on Friday, the market remained short of cash.
“The market has not really recovered from the massive cash mop-up by the central bank in late December despite the disbursement of budgetary allocation last week and the repayment of matured bills this week,” one dealer said.
Dealers insisted that many banks again resorted to borrowing from the central bank to fund their operations after the Nigeria National Petroleum Corporation withdrew large sums from the banks.
Nigerian banks depend largely on the monthly budgetary allocations and government agencies to fund their operations.
A banker said, he estimated that the interbank market was short by about 340 billion naira due to the deposit withdrawal and aggressive mopping-up by the central bank, late December.
The regulator is keen to curb growing money supply and rein in inflation, which rose to 6.6 percent in December from 5.2 percent a month earlier.
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