The Nigerian currency, Naira, on Wednesday, appreciated by two points against the Euro, to close at 423 against 425 traded on Tuesday, while the official foreign exchange market remained liquid, as the Central Bank of Nigeria (CBN), within the week, injected total sum of $195 million to meet demand for dollars as it continues its efforts to improve liquidity and reduce shortages.
The Federal Government, through her Central Bank, on Wednesday, set to sell N100.83 billion in Treasury Bills (T-Bills) at an auction, traders have disclosed.
However, the Naira, which has been hovering between 426 and 425 to the Euro in the past two weeks, extended its gain to close at 423 against 425 traded at unofficial forex segment the previous day on Wednesday, although it remained unchanged against the other two major foreign currencies at the same forex market.
In the just concluded month (October), the Naira, had sold mostly at 363 per US Dollar and 475 to Pound Sterling, and on the first trading day in the November, it was observed that the same rate was sustained against the two foreign currencies at the parallel market.
But even with the injection of the new $195m forex into the interbank market, the closing rate at the official forex market steadied at 305. 80, the same rate it has been selling per Dollar since Monday.
At the Nigerian Autonomous Foreign Exchange (NAFEX) window, which had rebounded on Tuesday, the Naira relapsed to open trading at a depreciated rate of 359.79 compared to 359.72 recorded on Tuesday and closed at 360.83 against 360.80 sold a day before.
Also, the Importer & Exporter FX window recorded a weaker transaction turnover of $72m compared to $158.98m declared on Tuesday; and $166.75m sold the corresponding period of last week.
Meanwhile, the apex bank in an emailed statement, said that $100m was offered to the wholesale market and it released $50 million for small and medium enterprises along with $45m; which was provided for such items as medical fees, tuition fees and business travel.
The CBN said it was determined to achieve “rates convergence”, adding that this was the reason for its “consistent intervention in the foreign exchange market”.
The apex bank, also, on Wednesday, offered N23.05bn of three-month paper, N23.43bn of sixmonth bill and N54.35bn of one-year notes.
It is worthy of note that the CBN issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity
