By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Thursday banned the sale of dollars to importers of telecom equipment, power generators and finished products at its foreign exchange auction, instead shifting demand to the interbank market, dealers,  a  Reuters  report quoted dealers as saying.

The report said the CBN also restricted banks and discount houses from placing more than N7.5 billion naira ($44 million) each as deposits with the regulator, swelling interbank naira liquidity.

According to reports, the naira fell low to 2.6 percent and was traded 2.1 percent lower at 170.74 per dollar; indicating a Year-to-Date (YTD) declined of 6.2 percent.

Standard Chartered Plc said Nigeria’s central bank had since mid-September, used reserves to sell dollars outside of regular auctions held Mondays and Wednesdays.  

‘’At auctions, the central bank offers the currency at 155 per dollar, plus or minus 3 percent. Gross reserves decreased 12 percent this year to $38.3 billion on Nov. 3,’’ the report added.

There are speculations that currency will be devalued because of lower oil prices; but Nigeria’s central bank has pledged to use foreign-exchange reserves to defend the naira and avoid raising interest rates or devaluing the currency before elections in February.