CBN sells $125.3m to BDCs as naira stabilises

CBN sells $125.3m to BDCs as naira stabilises

The nation’s currency maintains stability following various interventions in segments of foreign exchange market by the Central Bank of Nigeria (CBN).

Specifically, the CBN sold a total of $125.3 million to Bureau De Change (BDC) operators across the country. The Apex Bank allocates dollar to BDCs twice weekly to the tune of $20,000 each making a total of $40,000 per week.

Aminu Gwadabe, president, Association of Bureau De Change Operators of Nigeria (ABCON) told BusinessDay that 3,133 BDCs were cleared for this week’s bidding by the CBN, adding that naira maintains stability at the rate of N356 per dollar at the BDC segment of the market.

Naira on Wednesday remained stable closing at the rate of between N365 and N367 per dollar at the black market.

At the inter-bank spot foreign exchange market, the local currency appreciated marginally by N0.05k to close at N305.95k per dollar on Wednesday from N306.00k traded the previous day.

However, naira weakened by N2.92k or 0.80 percent at the investors and exporters forex window. It closed at the rate of N366.25k on Wednesday from N363.33k per dollar quoted the previous day.

The CBN plans to issue N204.95 billion ($651.7 mln) in treasury bills at an auction on July 19. The Apex bank aims to raise 36.78 billion naira in three-month bills, 39.17 billion naira in six-month paper and 129 billion naira in one-year bills.

Nigeria’s central bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity, Reuters report.

 

HOPE MOSES-ASHIKE

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