Forex: CBN Injects $303m, CNY 46.58m Into Retail SMIS

nairaA bank clerk counts U.S. dollar banknotes on bundles of 100 Chinese yuan banknotes
  • Forex: CBN Injects $303m, CNY 46.58m Into Retail SMIS

The Central Bank of Nigeria (CBN) has injected $303.91 million into the interbank retail Secondary Market Intervention Sales (SMIS). This is in addition to the sale of Chinese Yuan (CNY) 46.58 million in the spot and short-tenored forwards.

The figures obtained from the CBN last Friday, showed that the US dollar-denominated interventions were only for concerns in the agricultural and raw materials sectors.

CBN’s Corporate Communications Director, Isaac Okorafor said the exercise, which was in tune with the CBN guidelines, was for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.

While noting that availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market, Okorafor attributed the relative stability in the foreign exchange market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market. He assured that the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the needed foreign exchange by Nigerians.

It will be recalled that the bank last Tuesday intervened to the tune of $210 million to cater for requests in the wholesale segment of the forex market.

Meanwhile, $1 exchanged for N361 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.35.

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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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