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Nigeria to sell $500 mln after devaluing FX rate for retail customers -traders – Reuters

HomeNewsNigeria to sell $500 mln after devaluing FX rate for retail customers -traders – Reuters
21
Feb
Nigeria to sell $500 mln after devaluing FX rate for retail customers -traders – Reuters
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LAGOS Feb 21 (Reuters) – Nigeria’s central bank will sell $500 million on a 60-day forward contract to help boost dollar liquidity on the interbank market, traders said on Tuesday, a day after it effectively devalued the naira for retail currency transactions.

The central bank said the special intervention will be via a “wholesale bid” whereby commercial lenders will apply for a particular dollar amount as opposed to submitting individual customer demand.

Lenders will then allocate the U.S. currency to their customers, the central bank said in a mail to commercial banks, asking them to maintain the bid spread of 0.50 naira. (Reporting by Chijioke Ohuocha; Editing by Catherine Evans)

 


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