The Central Bank of Nigeria (CBN) Monday increased its supply of the United States dollar at its regulated Wholesale Dutch Auction System (WDAS) yesterday to $180 million, from $120 million supplied at last Wednesday’s auction.
Data obtained from the CBN website showed that unlike the previous auction, dealers purchased the total amount the greenback supplied by the apex bank. But the naira maintained its value of N155.74 to a dollar.
However, at the interbank segment of the forex market, the local currency declined marginally by 11 kobo as it closed at N157.38 to a dollar, lower than the N157.27 to a dollar it attained last Friday.
Analysts at Financial Derivatives Company Limited (FDC) revealed that the local currency has traded “flat in the forex market at N157 to a dollar and will continue with a horizontal movement mainly because of the robust external reserves and the current high price of Bonny light crude.”
Nigeria’s external reserves stood at $46.284 billion as at February 8, according to data obtained from the CBN’s website. The country’s crude, the Bonny Light also stood at N117 a barrel.
FDC also noted that based on rational expectations, “the markets have seen rates falling, especially bond yields that have been shaved by approximately 300 basis points. In January, bond yields on 3 -5 year bonds were 11.42 per cent per annum. The Treasury bill auctions also saw stop rates slashed to 10.31 per cent per annum for 90 day bills.”