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Naira Gains 30k at Dutch Auction

Posted by This Day Online on 2005/08/31 | Views: 573 |

Naira Gains 30k at Dutch Auction


The naira extended its rebound yesterday with a 30 kobo appreciation against the United States dollar at the Dutch Auction System (DAS).

The naira extended its rebound yesterday with a 30 kobo appreciation against the United States dollar at the Dutch Auction System (DAS).

At the close of business, the naira that had earlier gained N2.99 last week following the intervention of the Central Bank of Nigeria (CBN) in the foreign exchange market, exchanged at N129.57 per one US dollar. This is against the N129.87 that had prevailed since last week Tuesday.

THISDAY had last week Monday exclusively reported the injection of $500 million (the biggest single intervention since deregulation of the foreign exchange market) by the apex bank.

Foreign exchange valued at $128.84 million was sold to 55 banks yesterday by the apex bank, indicating 65 per cent increase over the $45.01 million sold at the last trading session.

Similarly, demand for foreign exchange also swelled by 68 per cent, from $46.01 million of the previous trading day to $143.69 million yesterday, indicating that demand is beginning to gather steam again.

According to the summary of yesterday's results, the highest bid rate was N135 compared with the previous trading day's N133. Unsuccessful bids stood at $48,563.27, while disqualified bids accounted for $14,209.131.17.

Cumulatively, the $128.84 million sold to banks by the banking watchdog yesterday, brings to $8.07 billion the total amount of foreign exchange that has been sold to banks by the CBN since the beginning of this year.

Similarly, the $80 million offered to banks Tuesday brings the total amount of foreign exchange that has been offered banks by the CBN this year to $7.23 billion.

Mirroring developments at DAS, at the export proceeds market, the average naira exchange rate at the close of work yesterday stood at N131.70 per one US dollar.

The reverse was however the case at the parallel market where the average naira exchange rate remained unchanged N144 per dollar.



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