The Central Bank of Nigeria (CBN) sold the yuan at 49-51 nairas at its first auction of the Chinese currency, two months after accepting a $ 2.5 billion exchange with Beijing
The auction, which traders say they saw the yuan sold for immediate settlement of 15 days, is part of efforts to encourage the use of an alternative currency to the US dollar
Central Bank officials met companies before the US Nigeria suffered severe shortages of dollars after that prices of crude oil, its main export product and its main source of foreign exchange fell at the end of 2014, resulting in the introduction of capital controls in 2015.
has multiple exchange rates against the US currency and sold the dollar on the interbank market to increase liquidity after floating the naira for investors.
In May, the Central Bank of Nigeria signed a currency exchange agreement with the people. The Bank of China has facilitated trade between the two countries and increased its reserves.
At the auction last week, some banks received up to 60% of the amounts requested. Traders said the volume sold was based on the yuan price, also known as the renminbi.
"In the details … it is more advantageous for customers who import raw materials, machinery and agricultural products from China Through the renminbi," a Nigerian lender said in a note to customers.
He added that the implied rate of naira made the yuan slightly cheaper than money, but he added that it was too early to say that it was the first auction . Nigeria is Africa's largest nation by its population and its largest economy because of its oil exports, but it lacks a manufacturing base and therefore depends on imports – mostly paid in dollars – to meet its consumption needs.
to counteract the resulting pressure on the naira, but some will not reflect for a while.
The CBN is currently selling dollars at a range of 330-350 naira, traders said.
The naira trades around 362 on a teller-teller system used by lenders while the unit is listed at around $ 305 per dollar on the official market, backed up by regular intervention by the central bank.