Lagos - Nigeria's central bank will
offer $150 million in currency forwards at an auction on Monday,
part of its efforts to narrow the spread between official and
black market exchange rates and improve foreign exchange
liquidity.
Traders, citing a notice from the central bank, said
settlement will be between one week and 45 days. The sale will
be through a wholesale auction to meet the forex demand from
businesses.
The central bank has been intervening on the official market
to try to narrow the currency's spread with the black market
rate. It has sold around $4 billion since intervention began in
February, analysts say, a pace they doubt it can sustain.
In a circular cited by Reuters on Monday, the bank also said
it will now allow investors to engage in foreign exchange
trading at rates the buyers and sellers set, a move it hopes
will increase the amount of dollars available in Africa's
biggest economy.
The president of Nigeria's association of bureau de change
said its group has already commenced consultations with some
foreign investors with a view to increase dollar supply in the
parallel segment of the market.
Aminu Gwadabe said retail currency bureaus are trying to
attract more foreign capital with the cooperation of the central
bank, to boost dollar liquidity and provide support for the
local currency.
On the official market, the currency was quoted at 306 per
dollar, while it was quoted at 381 per dollar.