Naira eases for second day at investors’ FX window

• as BDCs shun CBN’s $150 million offer

The value of Nigeria’s naira for portfolio investors eased for a second day on Wednesday compared with the interbank rate, despite the central bank supplying $25 million to boost liquidity.

The naira was quoted at 378.54 to the dollar on the new foreign exchange trading window introduced by the central bank on Monday for investors, data from market regulator FMDQ OTC Securities Exchange showed.

It closed at 374.96 naira at its previous session. On the main interbank market the currency was quoted at 305.90 naira and 388 naira on the black market on Wednesday.

Meanwhile, foreign exchange dealers were unable to absorb fully the $150 million offered by the Central Bank of Nigeria, CBN on Monday, as intervention in the new Investors’/exporters’ FX window commenced with the sale of $25 million to customers.

On Monday, the Central Bank supplied a total of $150 million to the interbank wholesale market for auction to authorised foreign exchange dealers.

But, the dealers were unable to subscribe fully to the offer, CBN spokesperson, Isaac Okorafor, said on Tuesday.

Mr. Okorafor said the dealers were only able to subscribe to about $96.37 million. He did not give reasons for the inability of the dealers to fully subscribe to the offer in the inter-bank market.

ALSO SEE: CBN must scrap multiple exchange rates – Soludo

A review of the market performance on Tuesday in some major cities, including Lagos, Abuja and Kano, revealed sustained positive performance of the Naira, with the value of the national currency at about N379 to dollar.

Mr. Okorafor said transactions under the new window include loan repayments, loan interest payments, dividends/income remittances, capital repatriation, management service fees, consultancy fees, and software subscription fees.

Others include technology transfer agreements, personal home remittances and any other eligible transactions, including ‘miscellaneous payments’ as detailed under Memorandum 15 of the CBN foreign exchange manual. It, however, excludes international airlines ticket sales’ remittances.