By Ademola Alawiye
Wednesday, 16 Feb 2011
The Central Bank of Nigeria has intervened in the foreign exchange market, offering $200m for sale at the foreign exchange auction.
According to information obtained by our correspondent on Wednesday, the total amount sold at the Wholesale Dutch Auction System was $200m while the total amount demanded was $230.29m.
The marginal bid was $150.47 while the weighted average rate was $150.54. The highest successful bid rate stood at $150.61 and the lowest bid rate was $150.45.
The number of successful banks, according to the information was 17, while the number of unsuccessful banks was three. The banks that participated in the WDAS were 20 in all.
Meanwhile, the naira had appreciated slightly against the dollar at the inter-bank market on Monday as the previous week’s foreign exchange sales by energy companies continued to provide support for the local currency.
Inter-bank lending rates rose by 1.66 per cent to an average of 9.66 per cent on Friday, from eight per cent recorded the previous week.
Liquidity in the market fell on foreign exchange purchases and cash recall by the Nigerian National Petroleum Corporation.
Traders at the inter-bank market had said that the cost of borrowing would rise this week as a result of expected cash outflows to reserve requirements and bonds.
The Secured Open Buy Back rose to 8.5 per cent from 7.5 per cent, rising by 200 basis points above the Central Bank of Nigeria’s 6.50 per cent benchmark rate.
The OBB also rose above the Standing Deposit Facility rate by 4.5 percentage points.
Overnight placement rose to 10 per cent from eight per cent, while call money climbed to 10.50 per cent from 8.50 per cent.
The Nigeria Inter-Bank Offered Rate showed that the seven-day borrowing rose to 10.58 per cent from 8.87 per cent, while the 30-day closed at 11.87 per cent from 11.08 per cent.
The 60-day traded at 12.79 per cent from 12.08 per cent, while the 90-day rose to 13.45 per cent from 12.95 per cent the previous week.
Source: Punch
