The Central Bank of Nigeria (CBN) yesterday injected $280 million into various sectors of the market and marked the commencement of its weekly $20,000 sale to licensed Bureaux de Change.
It also further announced the opening of bids for offering $100m wholesale 7-45 days forwards through the Deposit Money Banks (DMBs).
A breakdown of the intervention shows that invisibles, such as Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition, received $80 million, while the Small and Medium Enterprises (SMEs) window received $100 million. Together with the wholesale bid auction, the bank, on Tuesday, sold $280 million into the market.
The bank's spokesman, Isaac Okorafor, confirmed the releases, disclosing that the new window for SMEs would no doubt boost the business of SMEs through the importation of eligible finished and semi-finished items, thereby boosting FOREX supply to the retail business segment of the market.
Okorafor further explained that the CBN introduced the use of FORM Q for the SMEs, which requires just basic documentation, to ease the documentation challenges usually encountered by this category of businesses.
He reiterated that SMEs were allowed to purchase $20,000 per quarter in this arrangement.
He restated that the new form, which must be completed by all SME applicants, required the applicant to fill it with a supporting application letter as well as beneficiary invoice and bank wire transfer. According to him, eligible applicants must have operated their bank accounts for a minimum of six months.
On the sale of forex to BDCs, the bank said the decision was taken to ensure that the high volume demand by low-end users was met promptly.