The Central Bank of Nigeria on Wednesday offered $300m for sale at the foreign exchange market, as part of its weekly move to intervene in the market.

According to a circular dated July 10, 2013, a copy of which was posted on the apex bank’s website, authorised dealers were invited to submit their bid requests for Wholesale Dutch Auction Sysytem through Reuters Dealing 3000 Xtra to the CBN.

The apex bank however reminded dealers to fund their current account with the CBN, noting that bids with account not adequately funded would be disqualified.

Meanwhile, Nigeria’s naira firmed against the dollar on Wednesday as state-owned energy company, Nigerian National Petroleum Corporation sold dollars, traders said.

Reuters reports that the naira closed at 161.1 to the dollar on the interbank market, firmer from 161.8 at the previous day’s close.

“The market received a liquidity boost from the sales of about $350m by the NNPC on Wednesday and this helped the naira to gain value,” one dealer said.

The naira had been under pressure since last month, when offshore investors began selling out of the local debt market and repatriating their proceeds after the United States Federal Reserve signalled an end to its monetary stimulus.

Nigeria’s central bank resumed sales of forward contracts on the dollar to support the naira at a forward foreign exchange auction, the first since June last year.

Results of the auction have yet to be announced but dealers said demand was low.

The central bank sold $300m at 155.76 to the dollar at its regular twice-weekly auction, compared with $500m sold at the same rate on Monday.

“We see the naira gradually depreciating in the market since the NNPC has sold its dollar and there is no major inflow expected for now,” another dealer said.

Source: Punch (by Oyetunji Abioye)