*First
sovereign Islamic Bond to debut June 28
The exchange
rate at the parallel market remained stable at N367 to the dollar
yesterday, as
the Central Bank of Nigeria (CBN) again injected $418m into foreign exchange
market.
The
intervention, which cut across various segments of the inter-bank forex market,
was aimed at pushing for the convergence of various market rates and resumption
of support for the Naira, after a week lull.
This is
coming as financial market operators said $2.2b transactions were attracted at
the newly launched Investors and Exporters (I&E) FX Window of the
market.The CBN figures showed that the retail segment of the market received
the highest intervention of $226m, followed by the wholesale window that
received an allocation of $100m.
The Small
and Medium Enterprises (SMEs) window received $50m, while the invisibles
segment, comprising Business/Personal Travel Allowances, school fees and
medicals received $42m to meet customers’ demands.
The bank’s
spokesman, Isaac Okorafor, who confirmed the development said the volume of
currency trading in the Investors & Exporters window had cumulatively hit
$2.2b since the apex bank introduced it in April to boost liquidity in the
forex market and ensure timely settlement of eligible transactions.
He expressed
confidence that the interventions would continue to guarantee stability in the
market and ensure availability to individuals and business concerns.The CBN had
on Monday, injected $413.5m into the inter-bank market in its bid to guarantee
liquidity in the market, as well as shore up the value of the Naira.
An analyst,
told The Guardian that the increase in the volume of transactions in the
Investors’ & Exporters segment was a positive sign of increasing confidence
in the financial market, which has also manifested in stock market activities.
Meanwhile,
Nigeria would be issuing its first sovereign Islamic Bond known as sukuk worth
N100b within two weeks.Plans have reached advanced stage for the debut of a
$300m Diaspora bond, with roadshows in Britain during week. This will extend to
Switzerland and the United States.The Debt Management Office (DMO), said its
proceeds will be used to fund road projects.
The Islamic
bond is being scripted as seven-year tenor and would be traded on the Nigerian
Stock Exchange (NSE) and over-the-counter platform of the FMDQ Securities.
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