2 June 2018

Nigeria: CBN Pumps Additional U.S.$331.41 Million Into Forex Market

In continuation of its drive to guarantee foreign exchange (forex) liquidity in the system, the Central Bank of Nigeria (CBN) yesterday sold $331.41 million to players in different sectors in the Retail Secondary Market Intervention Sales (SMIS).

Confirming the releases, the Bank's Acting Director, Corporate Communications, Isaac Okorafor said companies in the agricultural, airlines, petroleum products and raw materials and machinery sectors were the beneficiaries of the intervention.

Okorafor explained that the CBN continued to make interventions in the forex market in order to guard against illiquidity and checkmate actions of speculators that could mount pressure on the country's reserves.

Reiterating the assurances of the CBN Governor, Godwin Emefiele, he said the Bank was buoyant enough to meet the foreign exchange requests of various customers cut across the different segments of the market.

He therefore charged every customer requiring foreign exchange to approach their respective banks with relevant documents to make formal requests, stressing that the authorized dealers had enough supply to meet every legitimate request.

Emefiele had last Monday paid unscheduled visits to some banks in Abuja, to monitor the extent of compliance with the CBN directive to deposit money banks (DMBs) in the country to buy and sell foreign exchange over-the-counter to traveling customers and non-customers of banks provided they present relevant and valid travel documents.

The CBN in that directive also mandated all Bureau de Change (BDCs) to henceforth access forex from the CBN, at least thrice weekly, failing which the CBN could review their licenses.

It will be recalled that the Bank, on Wednesday, May 30, 2018 offered the sum of $100 million to authorised dealers in the wholesale segment of the market, just as the Small and Medium Enterprises (SMEs) segment and the invisibles window each received $55 million.

Meanwhile, the naira traded at an average of N362 to the dollar on the BDC segment of the market across major cities in the country.

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