Citi trades first naira-settled FX futures with CBN
Central Bank of Nigeria (CBN) and Citibank on Wednesday executed the country’s first naira-settled futures trade against the dollar, market regulator FMDQ OTC Securities Exchange said.
On Monday the CBN introduced an over-the-counter futures market on the currency to help manage dollar demand, quoting the naira firmer at 279 to the dollar in a month’s time and at 210 naira by April next year. The rate at which Wednesday’s futures deal was done and the size of the trade was not disclosed.
The bank had last week auctioned $3.5 billion on the futures market to clear a backlog of currency demand after it lifted its 16-month-old peg to allow the naira to trade freely on the interbank market.
It sold $697 million in one-month futures, $1.22 billion in two-month contract and $1.57 billion due in three months, in order to clear a backlog of $4.02 billion of demand.
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