Naira Closes At N282.3 At Interbank Market

Godwin Emefiele, CBN Governor

THE naira-dollar exchange rate on Tuesday ended at N282.32 to the dollar, slightly weaker than Monday’s close of N282.

This is even as Nigeria plans to raise N94 billion ($330 million) in short-dated Treasury bills with 3-month to 1-year maturities on July 6, the central bank said on Tuesday.

The bank said it will raise N19 billion of the 3-month debt, N25 billion of the 6-month and N50 billion of the 1-year.

The Naira exchanged for N371.6 against the British pounds and N319.24 against the Euro at the interbank market on Tuesday.

The CBN sold an undisclosed amount of dollars on Tuesday. However, the interbank market traded a total volume of $32 million just before the market closed which traders attributed to central bank’s intervention.

Reuters quoted one trader as saying that “Liquidity is still relatively thin,” adding that clients were waiting to see where the naira settles eventually before they start to participate in the market.

Nigeria stopped peg on the naira to allow the currency to trade freely on the interbank market but thin liquidity has hampered activity, traders say, leaving the central bank as the main supplier of hard currency.

Currency traders on Monday said they had tightened the differential between bids and offers to N0.5 from one naira set when the currency was floated last week, to try to boost trading and attract liquidity.

Prior to old exchange rate peg, the currency market traded on N0.5 spreads, they said.