UPDATE 1-Nigeria central bank sold dollars on forward market above 400 naira -traders

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By Chijioke Ohuocha
ABUJA, Dec 11 (Reuters) - Nigeria's central bank sold
dollars on the forward market above 400 naira to foreign
investors for 150-day settlement with the spot market closing on
bid throughout the week despite interventions, traders said.
The bank sold around $400 million to foreign investors and
local companies on the forward and spot markets, traders said,
selling $150 million at 407.18 naira on the forward market and
$250 million at 395 naira on the spot market.
Dollar demand has been swelling and piling pressure on the
naira. Importers with past due obligations have scrambled for
hard currency while providers of foreign exchange, such as
offshore investors, have exited.
The naira on Friday hit a low of 408.19 on the
over-the-counter spot market NAFEX=FMDQ , quoted by investors
and importers, in thin trade, market exchange data showed.
Last month, the central bank weakened the naira to a record
low of 600 to the dollar on the futures market for five-year
settlement, highlighting the severity of dollar scarcity on the
spot market. Nigeria has been badly hit by the coronavirus pandemic and
an oil price crash that have hammered an economy that relies on
crude sales for government revenues, triggering an historic
decline in growth and large financing needs as well as weakening
the naira.
Foreign investors have sold Nigerian assets since February
due to the pandemic-induced crash in the price of oil, Nigeria's
main export.
It adjusted the spot market exchange rate in November after
the naira fell sharply on the black market, widening the gap
with the official rate of 381 set in July, prompting the central
bank to ease rules on diaspora remittance
The World Bank said on Thursday that diaspora remittances
this year were likely to fall to 2015 levels of $20.2 billion
from $26.4 billion last year.