LAGOS, Dec. 8 (Chinese media) -- The Central Bank of Nigeria (CBN) has concluded arrangements to introduce new policies to stabilize the naira which has been sliding against other currencies, according to the News Agency of Nigeria on Monday.
Chukwuma Soludo, CBN governor, disclosed this at the 2008 Annual Bankers' Dinner in Lagos at the weekend.
According to him, the CBN was not unaware of the present exchange rate of the naira against other currencies, particularly the U.S. dollars, and the apex bank would spell out a few directives this week to check the slide.
He said the bank was committed to meeting the demands at the market and determining prices, and that a stable exchange rate was strategic to the growth of the economy.
The CBN intervened last Thursday by selling 180 million U.S dollars on the inter-bank foreign exchange market, but dealers said the volume was far too small to meet the demand of around 2 billion U.S dollars.
Only banks bidding above 128 naira were given dollars, suggesting that the CBN was looking for the naira to settle at around that level in the short term and possibly to depreciate further in the medium term.
The CBN allowed the naira, broadly stable for months, to depreciate further against the dollar at its bi-weekly auction last Wednesday, selling at between 127 naira and 129 naira compared to around 117 naira a week ago.
Meanwhile, the CBN sold 900 million U.S dollars to retail banks on Friday at its second intervention on the inter-bank foreign exchange market during the week, allowing the naira to depreciate to 30 naira to the dollar.
The effect of the sliding naira was also impacting negatively in the bureau de change market where the naira is now exchanged for 134 naira.
According to analysts, further intervention by the CBN would stabilize the naira.
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