CBN floods FOREX market with $240 million, directs cash payments.

The Central Bank of Nigeria, CBN, on Monday injected $90 million to meet requests by bank customers, in its bid to sustain the supply of foreign exchange and ensure liquidity in the market.

The spokesperson of the bank, Isaac Okorafor, who confirmed the figure, said the fresh release is to meet invisibles such as basic and personal transport allowances, medical bills and school fees.

Invisibles are those items in the export trade that are untouchable, like movement of money and family, including BTAs, medical bills, plant and machinery as well as finished products.

Besides, Mr. Okorafor said the CBN also offered additional $150 million to authorised FOREX dealers in the interbank wholesale auction window to meet their customers’ demand.

Last week, the CBN had announced the adjustment of the bureax de change, BDC sale days to Tuesdays only, to reduce logistical difficulties, while the apex bank would henceforth sell $10,000 only to low-end FOREX dealers once every week.

To further ease the access of customers, Mr. Okorafor said the CBN had also directed all banks to pay cash over the counter to interested forex customers.

Urging the banks to oblige the genuine requests from their customers, the CBN spokesperson advised customers to report through available platforms any bank refusing to cooperate with the CBN.

The CBN spokesperson said the bank was optimistic that latest $150 million offered to authorised FOREX dealers in the interbank wholesale window would be enough to meet the requests of genuine wholesale customers.

During the last auction on March 28, 2017, customers had fully subscribed to the auction, clearing every dollar at stake.

Mr. Okorafor said on Sunday the CBN would disabuse the notion by some market speculators that it would not be able to sustain its FOREX intervention efforts.

To further strengthen the Naira value, which plunged to about N394 to a dollar on Friday, about 10 per cent depreciation from what was recorded earlier in the week, the spokesperson said the CBN would again inject more foreign exchange into the market early this week in an attempt to further weaken the dollar.

 

Source: Premium Times