By Chijioke Ohuocha
ABUJA, June 10 (Reuters) - The Nigerian naira for five-year
settlement was quoted at 578.37 to the U.S. dollar on
Wednesday, just off a record low of 584.11 last week, as a
shortage of dollars piled on pressure, while the central bank
seeks to bolster the Nigerian currency.
The naira has been hitting new lows on the black and
over-the-counter spot markets since March after the central bank
adjusted its official rate, implying a 15% devaluation.
Meanwhile, a crash in oil prices in April, triggered by the
coronavirus pandemic, worsened shortages of dollars in the
oil-producing nation.
The bank strengthened the naira on the futures market for
May 2025 settlement by six naira, traders said on Wednesday.
Introduced in February, 5-year naira futures traded above
550 last month on the derivatives market as dollars ran short on
the spot market.
Bankers say the central bank has been intervening in
liquidity on the interbank market around the time when the bank
plans currency auctions.
A central bank spokesman did not immediately respond to a
request for comment.
On Friday, the bank withdrew around 460 billion naira from
the banking system, banking sources said.
The bank has resumed dollar sales to local clients, selling
around $100 million per week, but has yet to sell to offshore
investors, traders say, after it scrapped a planned auction
because of lockdown measures to slow the coronavirus.
Importers been left scrambling for hard currency while
providers of foreign exchange, such as offshore investors, have
exited.
Liquidity on the over-the-counter spot market touched a low
of around $31 million on Wednesday from around $300 million a
day last year, traders said.
The naira closed at 387.08 on the spot market, while the
two-week currency futures settlement quoted the naira at 389.84.
The currency was quoted at 361 on the official market, backed by
the central bank.