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Nigeria to auction FX via book building to airlines, importers -traders
May 10, 2017 / 3:15 PM / in 3 months

Nigeria to auction FX via book building to airlines, importers -traders

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LAGOS, May 10 (Reuters) - Nigeria's central bank plans to auction an undisclosed amount of dollars on Wednesday through book building to settle a backlog of demand for airlines, fuel and raw material imports, traders said.

Traders said the central bank had asked lenders to bid for hard currency for specific sectors in efforts to improve dollar liquidity.

It said a cut-off rate at the auction would be applied at the marginal rate and that obligations due on fuel imports must have matured before Jan. 31 to qualify for the intervention.

The bank has been intervening aggressively since February to try to narrow the spread between the official and black market rates and has sold more than $4 billion. In theory, greater liquidity should lead rates to converge.

The local currency was quoted at 381.71 per dollar at the investor window, according to the market regulator FMDQ OTC Securities Exchange. It fetched 305.60 in the interbank window and 390 on the black market. (Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha and Susan Thomas)

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