CBN intervenes with $370.9 million in Foreign Exchange Market

The Central Bank of Nigeria (CBN) on Tuesday, carried out wholesale interventions in the interbank FOREX market by providing a total sum of $370,810,810.79 to 23 banks to meet customers requests.

The qualified bids for the United States dollars ranged from N315 to N360, of which seven banks received full allotments of their respective bids valued at $37,500,000 each.

Other banks received allotments ranging from $46, 512.50 to $15,578,081.51.

Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, explained that the Bank’s intermediation in the Forex market was the first wholesale intervention aimed at easing the pressure of access to forex by Nigerians who intend to meet obligations that fall under visible and invisible needs categories.

According to him, The CBN offered $500,000,000.00 for sale to the banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts.

While expressing optimism that the wholesale intervention of the CBN would substantially ease the foreign exchange pressure on visible and invisible needs of customers, Okorafor assured that the Bank would continue to make interventions based on qualified bids from the banks on the requests of their customers.

He reiterated that the Bank was more than ever ready to support the inter-bank market by ensuring liquidity and transparency to guarantee efficiency in the Forex market.

Okorafor, therefore, urged all market participants to contribute their patriotic quota and assist in ensuring that the new measures put in place by the CBN guarantee the steadiness of the financial market as well as the growth and development of the economy to the benefit of all Nigerians.

The CBN, after a meeting with Deposit Money Banks (DMBs) last Friday, issued new policy actions on FOREX aimed at easing access to foreign exchange for Personal and Business Travel as well as educational and medical fees, among others.

As part of its new policy action, the CBN also directed all banks in the country to open forex retail outlets at major airports as soon as logistics permit them to do such.

A breakdown of the forwards indicates that $216,465,671.02 was for 30 days, while $154,345,139.77 is for 60 days.

The CBN also on Tuesday, February 21, 2017, made spot sales of $1.5 million to four banks, totaling $6 million.

The Bank also offered $41 million for sales out of which $35 million was taken up for the payment of school fees, medical bills and personal and business travel allowances.

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