Manufacturers Get FX Boost as CBN Sells $330m in 60-day Forwards

Buses manufactured at INNOSON Vehicle Manufacturing (IVM) Co. Ltd, Nnewi, AnambraBuses manufactured at INNOSON Vehicle Manufacturing (IVM) Co. Ltd, Nnewi, Anambra
  • Manufacturers Get FX Boost as CBN Sells $330m in 60-day Forwards

The manufacturing sector received a boost wednesday following an intervention of the Central Bank of Nigeria (CBN) in the settlement of the valid applications of 60-day forwards funding deals in favour of agricultural, machinery and raw materials sectors.

In all, it was gathered that forwards deals totaling $330.09 million was the total request from the various sectors in the secondary interbank market, thereby providing a boost to the manufacturing sector.

The forwards deals comprised of $177.32 million under the 60-day forward sales and $152.77 under the 90-day category.

Media reported last Monday that desirous of ensuring that manufacturers get the required foreign exchange for the importation of critical raw materials as well as meeting the pent-up demand for the greenback, the CBN would sell $500 million through FX forwards to banks, for onward sales to their customers.

The move, which is also aimed at boosting economic activities in the country, was to cater to some of the FX demand of manufacturers that want to import plants and machinery, raw materials and agriculture equipment.

A top official of the CBN said banks were notified last week and given till noon today to send the list of FX requests from their customers in the manufacturing sector.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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