By Ademola Alawiye

Friday, 7 Jan 2011

The Central Bank of Nigeria on Wednesday intervened in the foreign exchange market, as it offered $250m for sale at the foreign exchange auction.

According to the information on the CBN website, the apex bank offered $250m, while the total amount demanded was $389.25m.

The CBN sold the entire amount offered at the forex market. The highest successful bid rate was $149.62m, while the lowest bid rate was $149.11.

The number of successful bids, according to the information on the CBN website was seven, while 13 was unsuccessful.

Inter-bank rates rose last week as a result of withdrawal of about N158.40bn from the system through the primary and secondary segments of the government securities market.

Available data from the FSDH weekly report showed that the seven-day Nigerian Inter Bank Offered Rate closed the week at 8.92 per cent, a 254 points increase from 6.38 per cent recorded the previous week.

At the Open Market Operations auctions held during the week, there was a total outflow of about N45.25bn. The bill was issued at discount rates range of 9.50 to 10 per cent.

The value of the naira appreciated at the parallel and inter-bank segments of the foreign exchange market during the week, while it remained stable in the official market. At the parallel market, the value of the naira appreciated by 150 kobo to close at N154 to a dollar, compared with the previous figure of N155.30 per dollar.

 

Source: Punch