Nigeria's central bank and Citibank on Wednesday executed the country's first naira-settled futures trade against the dollar, market regulator FMDQ OTC Securities Exchange said.
On Monday the central bank introduced an over-the-counter futures market on the currency, to help manage dollar demand, quoting the naira firmer at 279 to the dollar in a month's time and at 210 naira by April next year.
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The rate at which Wednesday's futures deal was done and the size of the trade was not disclosed.
The bank had last week auctioned $3.5 billion on the futures market to clear a backlog of currency demand after it lifted its 16-month-old peg to allow the naira to trade freely on the interbank market.
It sold $697 million in one-month futures, $1.22 billion in two-month contract and $1.57 billion due in three months, in order to clear a backlog of $4.02 billion of demand.
In the non-deliverable forwards market, the naira rose against the dollar on Wednesday, with the one-month contract quoting the currency at 283, converging almost with the spot market, which traded the naira at 282 at 1217 GMT.
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