CBN pumps fresh $367m into forex market

The Central Bank of Nigeria (CBN) on Monday pumped another $367,134,329.93 into the foreign exchange market.

The bank said the fresh round of retail interventions in the interbank forex market is aimed at meeting the forwards requests of customers.

A breakdown of the forwards shows that the sum of $144,073,753.07 was for 45 days forwards, while $223,060,576.86 was for 60 days.

Isaac Okorafor, the CBN acting director in charge of corporate communications, confirmed the release, adding that the move was in line with the bank’s determination to ease the foreign exchange pressure on various sectors through forward sales under the new flexible forex regime to keep the market liquidity.

The CBN had directed all banks to open teller points in all locations to ensure that customers have access to foreign exchange without hindrance.

In a statement signed by Alvan Ikoku, director, financial markets department, the apex bank said the directive was issued in a bid to increase foreign exchange liquidity in the market and ensure availability to end-users.

“In order to further increase foreign exchange liquidity in the market and ensure availability to
end-users, all banks are hereby directed as follows:

“Open teller points in all locations in order to ensure access to foreign exchange by their customers without any hindrance. Have electronic display boards in all their branches, showing rates of all traded currencies.

“Process and meet the demand for PTA/BTA customers within 24 hours of such applications. Process and meet demands for school fees (including allowances) and medical bills within 48 hour”.