22 January 2018

Nigeria: CBN Boosts Forex Market With U.S.$210 Million

The Central Bank of Nigeria (CBN), Monday, ended transactions at the inter-bank foreign exchange (forex) market with the auction of $210 million.

Last week, CBN intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $210 million, to cater for requests in the airlines, agriculture, petroleum, raw materials and machinery sectors.

The move, which was aimed at meeting customers' requests from various segments of the market, also came as a boost to the liquidity level, in efforts to sustain the stability of the local currency's exchange rate.

With the latest intervention, the local currency was exchanged at N305.35 per dollar at the official window compared to N305.70/$ last weekend, while it closed at N360.67 at the Investors' and Exporters' Window.

At the Investors' and Exporters' Window, a daily turnover of about $392.15 million was exchanged.

Of the $210 million auction, CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got $55 million, according to figures obtained from the bank on Monday.

The figures also indicated that customers needing foreign exchange for invisible such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the remaining $55 million.

The bank's Acting Director, Corporate Communications Department, Isaac Okorafor, reiterated CBN's determination to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

According to him, "CBN will continue to manage the forex with a view to reducing the country's import bills and minimise depletion of foreign reserves."


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