The Central Bank of Nigeria (CBN) Wednesday settled OTC FX futures contracts on the interbank market to the tune of $180 million.
The FMDQ OTC Securities Exchange said the transaction settlement followed the maturity of the “third OTC Futures Contract Notional $180 million of naira/$ of September 28, 2016, settled today on the FMDQ OTC Securities Exchange”.
This is just as the naira continued its precipitous decline on the parallel foreign exchange market, falling to a historic low of N460 to the dollar, lower than the N452 to the dollar on the day before.
However, the spot rate of the naira on the interbank FX market closed at N312.99 to the dollar, marginally lower than the N312 to the dollar from the previous day.
Commenting on the sharp depreciation of the naira on the parallel market, the Managing Director/Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, attributed it to the drop in the country’s external reserves. Nigeria’s external reserves stood at $24.615 billion as of Tuesday.