DOLLAR SUPPLY RAISED BY $200M AS NAIRA SHEDS 3 KOBO

AS Bank holidays due to October 1 independence anniversary and Eid-el-Kabir celebration shortened the number of days available for activities in the financial system, the naira shed 35 kobo week-on-week at the Interbank market, prompting the Central Bank of Nigeria (CBN) to increase dollar supply by $200 million. The increase in the amount offered, according to dealers, was provided to cover-up for Wednesday’s bank holiday and the upcoming increase in demand during the Eid-el-Kabir

The CBN sold $500 million to 20 banks at the Primary Market Retail Dutch Auction System (RDAS) auction, as against $300 million sold previously.

The auctions went at the marginal rate of N155.75/US$1.00.

Traders anticipate the pressure on the local unit will continue to build into this week, “as the bank holiday limits the number of days available for the auction.”

“The CBN is also likely to sustain the amount offered (US$500.0m) at the RDAS market next (this) week to cushion this demand,”dealers at Afrinvest stated.

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