Nigerian central bank injects $323mn, 18mn yuan into currency market

• Dollar intervention was for agricultural machinery and industrial raw materials, while the yuan was for yuan-denominated letters of credit.
• Importers are not willing to buy the dollar above the current range, which is partly helping to keep the naira stable as liquidity dries up from foreign inflows due to a fall in debt yields.
• In the over-the-counter market the naira was quoted at between 362 and 362.50 this week, holding within this month's range.

ABUJA: Nigeria's central bank injected $323.5 million and 17.9 million Chinese yuan ($2.5 million) into the currency market on Friday in an effort to keep it stable and prevent shortages.

A central bank spokesman said the dollar intervention was for agricultural machinery and industrial raw materials, while the yuan was for yuan-denominated letters of credit.

He added that the bank would continue to ensure adequate liquidity in the market.

Traders have said importers are not willing to buy the dollar above the current range, which is partly helping to keep the naira stable as liquidity dries up from foreign inflows due to a fall in debt yields.

In the over-the-counter market the naira was quoted at between 362 and 362.50 this week, holding within this month's range. The currency is quoted at 307 on the official market, supported by the central bank.