The Central Bank of Nigeria sold a total of $3.89bn at the Wholesale Dutch Auction System in the first quarter of this year.
Calculations by our correspondent showed that the apex bank also offered a total of $4.04bn within the period at the bi-weekly foreign exchange auction.
The breakdown of the figures obtained from the CBN website showed that the bank sold $833.48m in January, while a total of $940m was offered during the same period.
In February, the CBN increased the amount of dollar it sold to $1.153bn, while offering $1.160bn, representing an increase of $319.52m and $220m, respectively over the previous month’s figures.
In the same vein, the bank increased its dollar sales to $1.903bn in March with an offer of $1.94bn.
Analysts, who spoke with our correspondent, called for moderation in the central bank’s intervention in the foreign exchange market.
The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, told our correspondent in an interview on Tuesday that although there was the need for intervention in the forex market in order to maintain the exchange rate stability, might not be sustainable on the long run.
“They are intervening to maintain the exchange rate stability, but I don’t know how sustainable that will be, because you can’t keep maintaining an artificial price,” he added
The Managing Director, Sotice Investment Company Limited, Mr. Adedayo Toluwase, said, “Although, the position of external reserves is desirable, there is the need to apply caution in order not to send a wrong signal the naira.”
The external reserves, which have risen steadily since last year due to reasonably high oil prices and stability in the foreign exchange market, rose higher to $49bn last week.
Data obtained by our correspondent last Friday showed that the reserves rose 4.26 per cent higher than $47bn recorded last month.
The reserve, according to analysts, is sufficient to cover over 13 months of imports of goods and services, higher than the threshold of three months.
The reserves recorded $4.66bn in three months, from $44.34bn recorded from the beginning of the year till date.
The Governor, CBN, Mr. Lamido Sanusi, had said recently the country’s foreign reserves were driven mainly by proceeds from crude oil, gas exports, and crude oil related taxes as well as reduced funding of the Wholesale Dutch Auction System on account of the huge inflow of foreign portfolio investments.