It was mixed outcome for the naira yesterday as it appreciated at the interbank market and weakened at the official window after the Central Bank of Nigeria (CBN) failed to meet demand.
At the bi-weekly wholesale Dutch Auction, only $180 million was supplied out of$262.92 million demanded, making the currency to shed 48 kobo to close at N150.73. The naira appreciated by 70 kobo at the interbank, while at the parallel market, the currency remained stable at N161 to the dollar.
Dollar sales by oil giants, Shell, Chevron and Agip which sold a total of $150 million as part of their month end dollar sales, helped shore up the naira at the interbank, according to Reuters.
The CBN’s decision to intervene directly at the interbank and inability to meet demand at both markets has not helped the naira. The regulator three weeks ago banned petroleum dealers from sourcing dollars at its official window for imports while also restricting sale to foreign firms repatriating their dividends abroad all in a bid to curb excessive demand for foreign exchange.
The central bank has been trying to maintain the naira within a band of plus/minus 3 per cent around 150 naira to the dollar, but demand pressure in the last few weeks has seen the naira breaking the band.
CBN governor, Lamido Sanusi has been quoted as saying that the bank would review its target band for the naira in the next few days.
“We’ll give it a few more days and see where it settles finally and then we’ve got to come out with a new transparent band. Both the midpoint and the band could change. Whatever it is, we’ll let the market know very soon … It’s more likely to be around 155/156,” he was quoted as saying.
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