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CBN, Oil Majors Meet Dollar Demand, Causes FX Rate Stability

By on December 1, 2011

According to data from the CBN website, the apex bank supplied $200 Million at its bi-weekly auction yesterday. This was in fulfillment of the entire demand of $ 200 Million required by participants in the auction.

This action caused the Naira to firm up on the official market, appreciating by N 1.05 to close at N 156.31.

The inter-bank market however held a different view as the Naira depreciated 10 kobo to N 161.10. The parallel market remained unchanged at N 162.

Oil Majors, Shell and Mobil helped to satisfy the thirst for the greenback on the interbank market as the oil companies sold $ 50 Million and $ 100 Million, bringing stability to the market.

Artificial control of the trading levels of the Naira are being employed by the apex bank as Reuters reports stated central bank officials called banks and asked them to reduce their bid price at the auction in order to reduce pressures on the Naira.