CBN Sustains FOREX Intervention With Retail Auction

The Central Bank of Nigeria, CBN, has announced bids for retail auction by authorized dealers in the inter-bank foreign exchange market.

The CBN in a statement on Wednesday by Isaac Okorafor, its Acting Director, Corporate Communications, said the move follows its latest intervention of $195 million in other segments of the nation’s foreign exchange market.

Mr Okorafor said banks across the country are expected to submit requests made by their customers to the CBN, with results of the bids expected to be released publicly in the coming days.

It will be recalled that the CBN, in its last mediation in the market, injected the sum of $195 million into various segments of the inter-bank foreign exchange market, noting that the move was in continuation of its drive to ensure liquidity and stability in the foreign exchange market.

Okorafor had disclosed on Monday that the objective of the Bank’s intervention was to strengthen the international value of the Naira, while also ensuring accessibility to forex by customers requiring it for genuine purposes.

At the Bank’s intervention on Monday, authorized dealers in the wholesale window were offered the sum of $100 million, while the Small and Medium Enterprises (SMEs) got $50 million.

Also, the sum of $45 million was allocated to Basic Travel Allowance, tuition and medical bills.

Meanwhile, the Naira continued to maintain its stability in the Bureau de Change (BDCs) segment across major cities of Nigeria, closing at an average of N360 to the United States dollar on Wednesday, July 5, 2017.