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CBN, Citi trade first naira-settled FX futures


THE 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 central bank introduced an over-the-counter futures market on the currency to help manage dol­lar demand, quoting the naira firmer at N279 to the dollar in a month’s time and at N210 by April next year. The rate at which Wednesday’s futures deal was done and the size of the trade was not disclosed.
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.
In the non-deliverable for­wards market, the naira rose against the dollar on Wednes­day with the one month con­tract quoting the currency at N283, converging almost with the spot market, which traded the naira at N282 at 1217 GMT.
Meanwhile, the Debt Man­agement Office (DMO) said on Wednesday Nigeria plans to raise between N305 billion and 395 billion ($1.08 -$1.40 bil­lion) in local currency-denom­inated bonds with maturities ranging from five to 20 years in the third quarter of the year. The debt office said it would auction between N105 and N135 billion worth of bonds maturing in 2021, 2026 and 2036 in July, 95 and N125 bil­lion worth of same debt in Au­gust and N105 and N135 billion worth of the paper in Septem­ber.
In its latest debt issuance calendar, DMO said the 2021 paper was a new issue, while the 2026 and 2036 maturing papers re-opened previously issued debt.
Meanwhile, the Central Bank of Nigeria (CBN) yesterday said it is working out modalities to admit Bureaux de Change (BDC) operators into its new interbank forex market.
CBN Governor, Godwin Emefiele, who disclosed this at an interactive session of the apex bank, Association of Bu­reau De Change Operators of Nigeria (ABCON) and stake­holders in forex market, in La­gos, said that CBN was mindful of the possible effects of forex on the operators but solicited the BDCs’ patience, as it moni­tors activities in the market. - THE SUN

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