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The Central Bank of Nigeria and Citibank Nigeria have executed Nigeria’s first naira-settled trade against the dollar, according to a statement released by FMDQ OTC Securities Exchange on Wednesday.

The size of the trade and the rate at which the deal was executed were not disclosed.

On Monday the CBN and the FMDQ OTC Securities Exchange launched the naira-settled over the counter (OTC) FX futures market, which allows the trading of foreign exchange hedging contracts.

The launch came a week after the commencement of trading at the Nigerian interbank forex market, which transitioned Nigeria’s naira from a pegged exchange rate to a managed-float.

Last week, the CBN auctioned $4.02 billion on the interbank and forwards markets to clear its backlog of foreign exchange demand.

On the forwards market, the CBN sold $3.5 billion consisting of $697 million in one-month forward contracts, $1.22 billion in two-month forwards, and $1.57 billion in three-month forwards. The apex bank also auctioned $532.87 million on the interbank market at an auction rate ranging from N197 per dollar to N382 per dollar.

At close of trading at the FMDQ on Wednesday, the Spot FX rate on the OTC FX Futures market appreciated by 0.39 percent from N282.25 against the dollar on Tuesday to N281.23 per dollar.