The Central Bank of Nigeria on Monday intervened in the foreign exchange market as it offered $200m for sale at the auction.

It said, in a statement on its website, “Further to our circular Ref. FMD/FED/CIR/GEN/01/082/10 of December 29, 2010, the CBN hereby intervenes with an offer of $200m for sale at the foreign exchange auction of January 16, 2012.”

The statement said that authorised dealers were invited to submit their bid request for Wholesale Dutch Auction System through Reuters dealing 3,000 xtra to the CBN Abuja.

It said, “The dealers are also reminded that their current accounts with the CBN must be adequately funded on the day of bidding and the accounts should remain funded at the time of disbursement, failing which the bids will be disqualified.”

The CBN sold $198.127m at a marginal rate of N156.70, the statement added.

The highest bid, according to the CBN, is N157, while the lowest bid is N156.70; the number of participating and successful banks in the bid is 13.

The naira fell against the United States dollar at the inter-bank foreign exchange market penultimate Friday on fears that the Nigeria Labour Congress and Trade Union Congress might commence a nationwide strike.

The strike and protest against the hike in fuel price disrupted business activities throughout last week.

Importers bought and kept dollars because of the uncertainty on the likely impact of the strike and protests against the withdrawal of fuel subsidy on their business.

However, the naira closed at N162.10 to the dollar penultimate Friday, representing a 1.32 per cent decline, as against Thursday’s close of N159.95.

Currency dealers said the naira was under pressure as some importers bought dollars to secure their obligations in case the strike disrupted business activities and the foreign exchange auctions last week.

The NLC and the TUC on Monday suspended the one week old strike after several deliberations with the Federal Government.

The NLC President, Mr. Abdulwaheed Omar, said, “The organised labour decided to suspend the strike in order to save lives and in the interest of national survival.”

Source: Punch/Ademola Alawiye