20 June 2017

Nigeria: CBN Auctions $1 Billion in One Week

Photo: Premium Times
Central Bank of Nigeria.

The Central Bank of Nigeria (CBN) has in the last seven days, offered $1.01 billion at the inter-bank foreign exchange market to meet the requests of customers in the various segments of the market.

This is coming just as it offered $195 million yesterday, in efforts to sustain plans to achieve rates convergence, although a huge part of the amount were structured in 30-day and 60-day tenors.

Consequently, parallel market exchange rate gained N3 to N364 per dollar, against N367 it trended throughout last week, while inching closer to all rates.Last week, a mix of $831.5 million foreign exchange (about N254 billion at N305.75/$) and Open Market Operation (OMO) auctions reduced quantity of naira in circulation and stabilised exchange rate across segments.

A breakdown of today's intervention revealed that the apex bank offered $100 million to authorised dealers at the interbank wholesale window, while it allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) window.

The invisibles segment, made up of Business/Personal Travel Allowances, school fees and tuition, and medicals, was allocated $45 million.Confirming the figures in the latest round of intervention, the Acting Director in charge of Corporate Communications, Isaac Okorafor, also announced a retail option submitted yesterday, adding that the results would be released subsequently.

He reiterated that the bank would continue to ensure adherence to its forex policy by insisting on transparency of all stakeholders to guarantee stability in the market.

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