The Central Bank of Nigeria (CBN) has asked banks to bid in a special currency auction to clear a backlog of dollar obligations that businesses owe, traders said on Wednesday.

The central bank asked commercial lenders to submit backlog dollar demand from fuel importers, airlines, raw-materials producers, and makers of agricultural chemicals and machinery for manufacturers.

In a notice to commercial lenders, the central bank said it would hold a retail foreign exchange auction on Wednesday to sell two- to five-month dollar forwards. The amount of dollars to be sold was unspecified, Reuters said.

Last December, the central bank sold around $1 billion on the forward market to clear a similar backlog of dollar obligations, in an effort to support production in Africa’s biggest economy.

Meanwhile, investors are lining up to buy dollar bonds Nigeria is expected to issue soon despite the country’s first recession in a quarter of a century, a currency crisis and budget shortfalls driven by low oil prices.

On the face of it, the $1 billion of bonds Nigeria hopes to sell by the end of March might seem unattractive, especially at a time sentiment towards African debt has soured after Mozambique missed a coupon payment.

But a Reuters report yesterday indicated that investors hungry for higher returns in a low interest rate environment reckon Nigeria’s benign debt levels, recovering foreign exchange reserves and a potential yield above seven per cent are reasons enough to look beyond the country’s economic woes.

“Nigeria’s starting position is one of low debt so if they price it attractively they will be able to get it done,” said Claudia Calich, who manages an emerging market bond fund at M&G Investments.

Nigeria’s Eurobond has been a long time coming. A year ago, Nigeria appeared to have shelved the idea in favour of a loan from China, but it embarked on an investor roadshow for the bond late last year in the United States and Britain.

Nigeria is Africa’s biggest economy, a member of the Organisation of the Petroleum Exporting Countries and vies with Angola for the position of top oil producer, but that also means it is very exposed to fluctuations in the oil market.

The last time Nigeria issued dollar-denominated bonds in July 2013, oil was comfortably above $100 a barrel but the slump in prices from $115 in June 2014 to just $28 a barrel by January 2016 has hurt the West African country’s economy.

http://investorsking.com/cbn-to-sell-dollars-in-special-auction-to-clear-backlogs/

Lalasticlala Mynd44 seun Dominique

Nice Move, but the opportunity cost is likely to be very high as many government expenditures will be cut short, in other to avail much dollars.

I just hope they are really going to do it. This govt is full of Lies, the information minister itself can bear me withness

Afriifa:
Nice Move, but the opportunity cost is likely to be very high as many government expenditures will be cut short, in other to avail much dollars.

I just hope they are really going to do it. This govt is full of Lies, the information minister itself can bear me withness

They are already doing it, this is just an addition to what they've started.

Its not going to impede government expenditures as we are currently generating more from the surge in global oil prices. Hence, the move to ease economic gridlock.

Truth234:


They are already doing it, this is just an addition to what they've started.

Its not going to impede government expenditures as we are currently generating more from the surge in global oil prices. Hence, the move to ease economic gridlock.

thank you, well said

@Afriifa

This is not new. CBN has been intervening from time to time though mainly for matured FX obligations.

Adesiji77:
@Afriifa

This is not new. CBN has been intervening from time to time though mainly for matured FX obligations.

alright

Ok

Time will tell

With the help of God, we will soon get there in Jesus name.

Anyway God will help us

This is good

God knows we've tried
APC should better fix this country or face the wrath of the masses

issorait

Hmmm

Go down

this apc government should stop telling us nonsense all we need from them let naira be equal with dollar full stop

Godsate:
With the help of God, we will soon get there in Jesus name.

Where is there?

chuose2:
WE DEY WAIT ₦1 = $1



http://dailypost.ng/2015/03/23/i-will-make-naira-equal-in-value-to-dollar-buhari/

Meanwhile what has happened to Pharaoh?

Exodus 5:1
Go unto Pharaoh, and say unto him, Thus saith the Lord,
Let my people go, that they may serve me.

so gullible you are. the day you show me where Buhari is quoted as saying that he will make #1=$1, I will begin to take you serious. that is if you know the difference between being quoted and caption for a message.

I hope this is not from Lai Mohamed

Clone2020:
If you are in the US or have relatives in the US trying to send money to naija, I will exchange the funds at 420/$, simply deposit into my US bank account and receive instant funding into your Nigerian account. Don't bother with western Union and co, they exchange at 375/$ with fees and the exchange rate drops to around 345/$.

See my contact below..

SCAM!

alizma:

so gullible you are. the day you show me where Buhari is quoted as saying that he will make #1=$1, I will begin to take you serious. that is if you know the difference between being quoted and caption for a message.

I KNOW YA BLIND BUH I JUST WANNA HELP YOU OUT

http://dailypost.ng/2015/03/23/i-will-make-naira-equal-in-value-to-dollar-buhari/.

OYA OPEN AM MAKE YOU FIND PERSON WEY GO HELP YOU READ AM

This people sef...

Ok

BAILMONEY:
I KNOW YA BLIND BUH I JUST WANNA HELP YOU OUT

http://dailypost.ng/2015/03/23/i-will-make-naira-equal-in-value-to-dollar-buhari/.

OYA OPEN AM MAKE YOU FIND PERSON WEY GO HELP YOU READ AM

stay in class whenever your teacher is teaching, most importantly your English and Mathematics teachers but you wont listen. you failed in school and you have come to nairaland to fail again. open that link and tell me if Buhari is quoted as saying that he will make #1=$1.
Let me just help you out. the statement of one dollar to one Naira is just a caption that the newspaper companies used to get people like you to buy their market. from the link, Buhari was only quoted as expressing displeasure at the rate which does not absolutely translate that he wants to make them equal.
more so, whenever you are reading a newspaper with caption that indicate someone says something and you want to know if he really said so, focus your attention on the areas where there are inverted commas like this, " ".
you can open the link, read through and tell me if Buhari actually said he was going to make one Naira equal to one dollar.

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The banks should reciprocate by increasing the Master Card Naira Daily limit naaaa #Feburary14Near

stevenson007:


THIS GUY HAS BRAIN PROBLEMS.

ITS EITHER BRAIN TUMOR OR BRAIN CANCER!

guy bet why that insult heavy ooo