Oyetunji Abioye

Deposit Money Banks lacked naira liquidity to bid for the $100m offered for sale by the Central Bank of Nigeria on Thursday.
Findings showed that banks were unable to buy over $39m out of the $100m offered for bid by the apex bank.

The Nigerian interbank lending rates rose sharply by around 100 percentage points on Thursday, as commercial lenders scrambled for cash to pay for bond purchases and cover their positions.

Overnight lending rates rose to around 300 per cent from 200 per cent at the end of trading on Wednesday, as naira liquidity dried up in the banking system and some banks were forced to borrow from the CBN, Reuters reported.

The Federal Government raised N105.32bn from bond sales last week, and payment for the debt sale was due on Thursday, draining liquidity in the market and pushing further up the cost of money in the market.

The CBN has consistently sold dollars at both the spot and forward markets, and required banks to pay for the purchase. This has drained liquidity in the market. The nation’s financial markets were closed on Thursday for the Easter celebrations and will reopen on Tuesday.

The CBN had last week opened a special forex window for the Small and Medium-scale Enterprises to enable entrepreneurs to import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.
The regulator also opened a special forex window for the remittances of dividends denominated in foreign currencies abroad.

The move came after the regulator made a special intervention in the Bureau de Change segment of the foreign exchange market which resulted in each operator accessing $20,000 as against the earlier stipulated $10,000 per week.

Despite the series of dollar supplies into the various segments of the forex market, the naira closed at 410 against the United States dollar on Thursday, fuelling concerns about the CBN dollar interventions.

The local unit closed at 410/dollar consecutively from Tuesday to Thursday.

Justifying part of the recent spate of interventions, the Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said, “The special interventions were necessitated by its findings that a large number of the SMEs were being crowded out of the forex space by large firms and also service genuine demand for invinsibles like tuition fees, medical and personal/basic travel allowance.”

However, analysts have said the naira is likely to strengthen this week on increase in dollar sales to foreign exchange bureaus.
The CBN is reportedly planning to raise dollar sales to BDCs to $40,000 from the present $20,000, which will improve liquidity and help support the local currency.

The local currency was quoted at 410 to the dollar on the black market on Friday, compared with 398 to the dollar last Friday.
At the official window, it closed at 306.10 to the dollar on Thursday against 306.20 per dollar last week.

http://punchng.com/naira-shortage-forces-banks-to-boycott-cbn-dollar-sale/

bad things happen bacause good people refuse to speak up, everyone is forming i-dont-carr and buhari is finishing this economy, okay oooo

So we've moved from dollar scarcity to shortage of the naira?

Probably because the banks both the commercial and the CBN officials have been checkmate in their racketing, they have lost interest in the FX... We truly have a long way to go in Nigeria because of the ingrained systematic corruption everywhere.

Before Na dollar shortage, now Na naira shortage abi? Ok make una continue.

This is a short term solution what is the long term remedy?For how long will CBN be going to be saleing USD?

Buhari sef

Naira shortage?? ayam nt understanding

Nigeria and weird news all the time...

Why Naira shortages? Or speculators now hoard the Naira instead of dollars

From $20,000 to $40,000 to BDC by CBN. CBN are jokers... They keep playing with the digits

This dollar stuff just don taya me jare, today reduce... Tomorrow rise.. . ..

Buharimustgo:
This is a short term solution what is the long term remedy?For how long will CBN be going to be saleing USD?

Everybody have turned economic guru, see what recession has caused.

Those evil forces manipulating our currency and economy, shall soon be destroy by the power of Christ resurrection.

Wetin concern me let me bad jare

voting in an economic disaster with an undisputed record from 1984 was a great mistake

.... so in essence, we cant even afford to buy the dollar we use to crash the price of dollar?...

In summary... we are broke? Dollar and naira wise

A wana baff jare

The system is designed to fail

Please who agrees with me for buhari to die oh...
He our major problem now when it comes to do with Naira and Dollar...
when he was out it was getting better now he back problem...
what's Naira shortage when Naira can not be changed anywhere in the world...
Naira is a local currency and as such always in Nigeria...
BUHARI BUHARI BUHARI DIE NA

From dollar shortage to naira shortage... E go soon become cowries shortage.... I just tire for this country

Buharimustgo:
This is a short term solution what is the long term remedy?For how long will CBN be going to be saleing USD?

chai!!!

You See the demerit of whistle blowing?

Large sums of naira have been withdrawn from the banking system and kept in flats and shops.

Crisis looms for the financial sector.

This government and their crude policies will burn this country las-las.

So there is now more Dollars than Naira? We are gradually getting there : #1=1$.

Someone here needs your help please
https://www.nairaland.com/3724994/please-ss-nairalander

DEDICATED THIS FTC TO BROTHER JESUS FOR DYING AND RESURRECTING FROM THE DEAD.

THE ECONOMY IS DEAD AND WILL ALSO RESURATE .. MAKE WE COOL DOWN INSIDE RIVER NIGER FIRST TO WAIT FOR THE NAIRA TO RISE...

I bet most of you don't know how inter Bank sales and intervention fund plays but you type just to spew rubbish all the time. Mshewww.

Nigeria a country of fairy tales.

KingMicky3286:
DEDICATED THIS FTC TO BROTHER JESUS FOR DYING AND RESURRECTING FROM THE DEAD.

THE ECONOMY IS DEAD AND WILL ALSO RESURATE .. MAKE WE COOL DOWN INSIDE RIVER NIGER FIRST..

FTC where?

WachsComedy:
Please who agrees with me for buhari to die oh...
He our major problem now when it comes to do with Naira and Dollar...
when he was out it was getting better now he back problem...
what's Naira shortage when Naira can not be changed anywhere in the world...
Naira is a local currency and as such always in Nigeria...
BUHARI BUHARI BUHARI DIE NA

Buhari shall live to deliver Nigeria by the Grace God.

Now it naira thats on shortage not dollar anymore