L
LequteMan
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Nigeria- After the Central Bank of Nigeria announcement on Wednesday that it has scrapped its bi-weekly currency auctions, a market body said it would sell dollars only at 198 naira, a move that amounts to a de facto devaluation of the currency of Africa's biggest economy.
Segun Agbaje, chief executive of GT Bank and an FMDQ director said the scrapped dollar auctions made up only 10 percent of all FX trade, and abandoning them meant the central bank had effectively ditched its official 160-176/dollar target band.
Any outstanding dollar demand at the end of each trading day would be met by the central bank at 198, FMDQ vice chairman Jubril Aku told a news conference.
"Starting from Friday, the interbank market is order-based -- essentially filling orders of customers," he said.
Under new trading rules, banks will only be able to purchase foreign exchange if they have a prior order from a corporate customer, such as a fuel importer or foreign mobile phone company looking to repatriate profits or dividends.
However, the Central Bank of Nigeria (CBN) did not stipulate the level at which it would sell dollars, but said it would continue to intervene "to meet genuine/legitimate demands".
#Nigeria #Naira
Segun Agbaje, chief executive of GT Bank and an FMDQ director said the scrapped dollar auctions made up only 10 percent of all FX trade, and abandoning them meant the central bank had effectively ditched its official 160-176/dollar target band.
Any outstanding dollar demand at the end of each trading day would be met by the central bank at 198, FMDQ vice chairman Jubril Aku told a news conference.
"Starting from Friday, the interbank market is order-based -- essentially filling orders of customers," he said.
Under new trading rules, banks will only be able to purchase foreign exchange if they have a prior order from a corporate customer, such as a fuel importer or foreign mobile phone company looking to repatriate profits or dividends.
However, the Central Bank of Nigeria (CBN) did not stipulate the level at which it would sell dollars, but said it would continue to intervene "to meet genuine/legitimate demands".
#Nigeria #Naira
