…US$39 million was sold on September, offered at the rate of N1580.00/US$-1605.00/US$.
…US$17.500 million was the lowest amount sold (September 23,2024), offered at the rate of N154.00/US$.
SAT OCT 05 2024-theGBJournal| The Central Bank of Nigeria (CBN) said it sold a total of US$543.5 million from September 6-30, 2024 to Authorized Dealer banks through two-way quotes at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
A breakdown of sales shows that US$39 million was sold on September, offered at the rate of N1580.00/US$-1605.00/US$.
US$17.500 million was the lowest amount sold (September 23,2024), offered at the rate of N154.00/US$.
On September 26th, the CBN sold the highest amount in the month, US$80 million, offered at rate of N1570.00/US$-N1580/US$.
The CBN makes the spot sales to reduce observed market volatility driven by high demand for commodity importation and seasonal demand for FX.
The value dates for all the transactions were T+2, the CBN said.
Meanwhile, the naira depreciated by 3.4% w/w to N1,631.21/USD at the NAFEM as the CBN made no interventions during the week.
Total turnover (as of 03 October) at the market declined by 30.7% WTD to USD906.11 million, with trades consummated within the N1,540.00/USD – N1,699.00/USD range.
Notably, Nigeria’s FX reserves recorded accretion for the fifth consecutive week, increasing by USD517.01 million w/w to USD38.58 billion (03 October).
In the forwards market, the naira rates declined on the 1-month (-0.3% to N1,689.10/USD), 3-month (-0.7% to N1,770.68/USD), 6-month (-1.1% to N1,870.30/USD) and 1-year (-2.1% to N2,095.43/USD) contracts.
The overnight (OVN) rate expanded by 275bps w/w to 32.8% as OMO auction (N731.14 billion), CRR (N110.00 billion), and FX sales (N98.00 billion) debits pressured financial system liquidity in the absence of any significant inflows.
As a result, the average system liquidity settled at a net short position of N174.26 billion (vs a net long position of N462.09 billion in the previous week).
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