The naira stabilizes at N284.83 to a dollar on the second day of trading on the interbank spot market on Tuesday, as against the N281.85 at which it closed on Monday, even as the Central Bank of Nigeria (CBN) intervened for the second day in a row by selling dollars to the market in order to trigger trading between banks due to liquidity concerns.
In total, the central bank sold around $100 million in the interbank market, according to CBN spokesman Isaac Okorafor.
This followed an auction of $4.02 billion on Monday, when the naira slumped 30 per cent after the central bank abandoned its peg.
However, liquidity concerns pushed up the overnight tenor of the Nigerian Interbank Offered Rate (NIBOR) to a record of 60 per cent during intra-day trading, but ended the day at 51 per cent, as commercial lenders expected the Central bank to debit them around N1.2 trillion to cover hard-currency purchases.
Also, the secured open buy back rate (OBB) stood at 45 per cent yesterday.
Similarly, Nigeria’s dollar-denominated bonds rose as much as half a cent.