A Review of the Nigerian Energy Industry

Nigerian Naira loses value by 0.1%

Chima Ugwuanyi

14 November 2012, Sweetcrude, Lagos – The Naira, yesterday, fell for a second day as oil companies were said to have refrained from selling dollars in the market.

The Central Bank of Nigeria (CBN), upped foreign exchange at the first of its bi-weekly WDAS to $150 million.

Like the last auction where the CBN sold all $50 million on offer, the entire $150 million on offer was sold yesterday as the Naira depreciated marginally by 0.01% to close at N155.75/US$ at the official window.

Foreign exchange sales by the CBN had declined substantially at recent auctions riding on dollar sales by oil majors in the autonomous market.

The impact of the thinning dollar supply also reflected in the interbank
market with the Naira dropping further by 34 kobo to close at N157.84 per dollar.

Jide Solanke, an analyst at First Securities Discount House Limited has said: Expected dollar sales from the Nigerian National Petroleum Corporation has not
come through. The Central Bank has not been selling much.”

Oil-producing companies, which sell dollars to meet domestic expenses, are the second-biggest source of foreign currency after the Central Bank which sells dollars on Mondays and Wednesdays to keep the naira within a 3 per cent band
around 155 per dollar.

Furthermore, trading in the T-Bills market was dominated by soft-selling with yields inching higher across most tenors reflecting tighter liquidity after
last week’s Open Market Operation (OMO) auctions totaling N200 billion.

In this article

Join the Conversation

  • The drop is within manageable proportion. Here at Sweetcrudereports, we give kudos to the efforts of the economic management team for maintaining monetary exchange rate stability in the last four months. Perhaps if the Team had better corporation from other arms of government via vis avis reduced corruption and fiscal discipline, the country may make better progress.

  • Na 2day?

  • @beto.we have to start from somewhere

  • If you believed in God you lack not,because with God anything is free to gift.