CBN Pumps $543m, CNY 63m Into Forex Market

DollarPhotographer: Susana Gonzalez/Bloomberg
  • CBN Pumps $543m, CNY 63m Into Forex Market

The Central Bank of Nigeria (CBN) has injected $543.22 million and Chinese Yuan (CNY) 63.21 million into the inter-bank foreign exchange market.

At the last trading, the apex bank offered $100 millon as wholesale interventions and allocated the sum of $55 million to the Small and Medium Enterprises (SMEs) forex window. Also, the invisibles window, which caters for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, received $55 million.

Similarly, on Friday, August 24, the bank injected the sum of $323.22 million into the interbank retail Secondary Market Intervention Sales and sold a total of CNY 63.21 million in the spot and short-tenored forwards, arising from bids received from authorised dealers.

The CBN spokesperson, Isaac Okorafor, who confirmed the figures, said the Bank remained committed to maintaining the country’s external reserves to safeguard the international value of the naira in line with the bank’s mandate. According to him, the bank’s management of the forex market had entrenched transparency in the market and continued to strengthen the value of the naira against other major currencies of the world.

On the sale of Chinese Yuan (Renminbi), Okorafor disclosed that it was in line with the CBN guidelines, which stipulate that it would be for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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