CBN Intervenes in the FX Market, Spends $340m, CNY 69m

• CBN Intervenes in the FX Market, Spends $340m, CNY 69m

The Central Bank of Nigeria intervened in the foreign exchange market to further strengthens business activities and deepen growth.

The apex bank injected $340 million into the interbank market following the sale of 60 million Chinese Yuan sold in the sport and short tenor forward contracts

A document obtained from the CBN showed the dollar-denominated interventions were only for the agricultural sector and raw materials.

CBN Acting Director, Corporate Communications, Isaac Okorafor, said the sales of the Chinese Yuan were through a combination of spot and 15-day tenors. According to him, the exercise was for the payment of Renminbi denominated letters of Credit for agriculture and machinery.

Mr Okorafor explained that “the requests attended to were bids received from authorised dealers, adding that Renminbi’s availability was sure to ease pressure on the Nigerian foreign exchange market.”

The Acting Director attributed the stability in the foreign exchange market to the continuous intervention of the CBN as well as the surged in global oil prices.