CBN to sell USD100 million at Forex auction today

CBN to sell USD100 million at Forex auction today

Nigeria’s Central Bank, CBN said it will sell at least USD100 million at today’s Forex auction market.

The sales are part of the effort of the CBN to improve USD liquidity in Nigeria’s financial markets which has seen a recovery in Forex availability.

The CBN in a note to commercial lenders, the regulator said the dollar auction would be both for spot and forward deals which would be settled within the next 60 days.

The central bank has been intervening in the official market in the last few months to try to narrow the spread between rates on the official market and black market and it has sold over $5 billion since February.

Last week the bank said it would continue to intervene in the foreign exchange market to support the naira.

Nigeria has at least six different exchange rates including a retail rate set by licensed exchange bureaus, the official and black market rates and a window for investors where the naira can be traded at rates set freely between buyers and sellers.

According to Thomson Reuters, the naira was quoted at 371.41 on the investors’ window.