The Central Bank of Nigeria, CBN, on Monday continued its intervention in the inter-bank Foreign Exchange Market by injecting additional $195 million to meet the increasing demands of customers.
Acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, confirmed the figures in the latest round of intervention by the Bank in Abuja.
Mr Okorafor further announced a retail option submitted on Monday, with the results to be released soon.
The CBN spokesperson said the Bank would continue to ensure adherence to its forex policy by insisting on transparency of all stakeholders to guarantee stability in the market.
The apex bank last week released over $800 million into various segments of the market last week.
A breakdown of the intervention revealed that the Bank offered the sum of $100 million to authorized dealers inter-bank wholesale window, while it allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) window.
The invisibles segment was allocated the sum of $45 million to meet the needs of those who applied for Forex to settle Business/Personal Travel Allowances, school tuition, and medicals, etc.
Also last week, the CBN, in a bid to tackle inflation, unveiled plans to mop up a total of N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 per cent per annum.
Meanwhile, the naira continued to maintain its stability in the FOREX market, exchanging at an average of N364/$1 in the BDC segment of the market on Monday, June 19, 2017.
The Central Bank of Nigeria (CBN) has steadied its efforts to achieve convergence of rates at the foreign exchange market.
In a statement on Monday by its Acting Director of Corporate Communications, Mr. Isaac Okorafor, the CBN announced the approval of $413.5 million for Small and Medium Enterprises (SMEs), invisibles segment as well as for dealers in the wholesale windows.
Okorafor said the Apex Bank offered the sum of $100 million to dealers in the wholesale window, the Small and Medium Enterprises (SMEs) window got $28 million and the invisibles segment was allocated the sum of $25.5 million to meet the needs of those requiring forex for Business/Personal Travel Allowances, school tuition, medicals, etc.
According to him, figures of last week’s auction sales in the retail window stood at $260million.
Okorafor restated the Apex Bank’s commitment to “guarantee liquidity in the market as well as shore up the international value of the naira.”
He said the CBN was “optimistic that the Naira will continue its strong run against the dollar and other major currencies around the world, considering that transparency in the market has ensured greater stability.”
The CBN spokesperson added that the Bank was “confident of achieving the goal soon, particularly if all stakeholders played by the rules.”
He said, “The naira continued to maintain its stability in the FOREX market, exchanging at an average of N362/$1 in the BDC segment of the market on Monday, June 12, 2017.”
While urging all dealers and principally licensed Bureaux De Change (BDCs) operators to continue abide by the rule, the CBN spokesperson noted that the Bank will not hesitate to wield the big stick when necessary.
The nation’s equity market on Tuesday maintained a bullish trend for the eighth consecutive day with the indices appreciating by 1.28 per cent and the volume by 101.48 per cent.
The Central Bank of Nigeria, CBN, on Tuesday barred about 15 commercial banks from dealing in the foreign exchange market after failing to sell special forex intervention funds of $100 million allocated to them.
Spokesperson to the apex bank, Isaac Okorafor, said the decision followed numerous complaints from business owners, who claim the banks are deliberately frustrating their efforts to access foreign exchange through the new window.
Mr. Okoroafor said the apex bank carried out field monitoring reports, which found that eight of the banks complied with the rules.
He said the CBN frowned at the action of the banks that refused to sell foreign exchange to SMEs to enable them import eligible finished and semi-finished items, despite the availability of forex from the CBN wholesale intervention window.
“All banks that had refused to sell FOREX to the SME actors after accessing over $300 million offered to the SMEs wholesale forex window since its creation last month will be sanctioned accordingly,” the spokesman said.
“We are confident that the continued interventions by the CBN will continue to guarantee stability in the market and ensure availability to individuals and business concerns,” Mr Okorafor said.
According to him, the Central Bank will not sit back and allow any form of instability in the interbank forex market through the actions of institutions or individuals.
The CBN continued its intervention in the foreign exchange segment of the financial market by injecting a total of $196.2 million into the various segments on Tuesday.
A breakdown of the other interventions indicated that about $52 million was made available to the SMEs segment, while Personal/Basic Travel allowances as well as allocations for medicals and tuition fees received $44.2 million.
The 15 banks sanctioned, according to the Premium TImes includes, Citibank, Ecobank, Enterprise Bank, First Bank, First City Monument Bank, Guaranty Trust Bank, Key Stone Bank, MainStreet Bank, Skye Bank,
Stanbic IBTC Bank, Standard Chartered Bank, SunTrust Bank, Union Bank of Nigeria, United Bank for Africa, and Wema Bank.
The banks found not culpable include Access Bank, Diamond Bank, Fidelity Bank, Heritage Bank, Sterling Bank, Unity Bank, Zenith Bank and Jaiz Bank.
The source said these were the banks that have been allowed to sell forex to the SMEs segment since the inception of the new window.
The Naira, on Thursday, depreciated slightly against the dollar at the parallel market.
The Central Bank of Nigeria CBN) has increased the Forex allocations for licensed Bureaux de Change (BDCs) operators in the country to $10,000 effective from Monday, April 3, 2017.
In what appears to bowing to public pressure, the Central Bank of Nigeria (CBN) on Monday announced a new forex policy with immediate effect designed to make forex available to Nigerians.
The naira has depreciated further against the United States dollar at the parallel market to 500, from 498.
The Securities and Exchange Commission (SEC) has again extended the recapitalisation deadline for Capital Market Operators (CMOs) from the initial December 31, 2016 till March 31st, 2017.