Nigeria To Sell 100 Million Dollars At Special Forex Auction
It appears Central Bank of Nigeria will not rest until it has put the American green back in its place.
Despite the dollar’s continuous cowering before the once-troubled naira, the apex bank has announced it will on Wednesday sell $100 million at a special foreign exchange auction.
In a notice to commercial banks, the regulator said the dollar auction would be for spot – the ones to be delivered immediately - and forward - the ones to be settled within the next 60 days.
CBN’s target remains to narrow the spread between rates on the official market and black market. It has sold over $5 billion since February, 2017.
The naira came close to converging at the investor foreign exchange window and black market on Friday, with analysts attributing the development to increased dollar supply.
The naira was quoted unchanged at 368 per dollar at the black market on Wednesday, while commercial lenders are yet to put up a quote on the interbank market.
The naira was quoted at 367.83 per dollar on the window on Friday, the last trading day before the two-day public holiday on Monday and Tuesday to mark Eid al-Fitre.