Naira yesterday maintained its stability, closing N315 against the dollar at the autonomous market, the same since Monday this week. It was also stable at the parallel market closing at N320/$.
The local currency appreciated in value against the dollar yesterday, gaining N0.82k or 0.41 percent at the interbank foreign exchange (FX) market. It closed at N198.51/$ compared with N199.33/$ the previous day at the same market, according to data from FMDQ.
However, at the CBN’s clearing rate on the interbank market Wednesday, the naira remained unchanged at N197/$, data from FMDQ indicated.
Meanwhile, Nigeria plans to raise N100 billion ($503.02m) in local currency denominated bonds with maturities ranging between 5 and 20 years on March 16, the Debt Management Office (DMO) said. The debt office said it would raise N40 billion at par in the local bond maturing in 2036, N40 billion of the paper maturing in 2026, and N20 billion of the debt maturing in 2020 on Wednesday.
The 2026 and 2020 maturing notes are re-openings of previously issued paper, while the 2036 maturing note is a fresh issue.
President Muhammadu Buhari has rejected calls by the International Monetary Fund to lift FX curbs and allow a more flexible rate for the naira, backing the central bank’s actions.
The tight dollar restrictions have forced domestic lenders to delay hard currency loan and trade repayments to foreign banks and increased the risk of default, bankers say.
Foreign funds fled Nigerian assets as the oil price decline worsened, further weakening the naira and helping fuel inflation, which is currently outside the central bank’s target range at 9.6 percent.
