The Central Bank of Nigeria on Monday said it carried out another round of retail intervention in the interbank foreign exchange market by providing a total of $367,134,329.93 to meet the forward requests of customers.

A breakdown of the funds shows that the sum of $144,073,753.07 was for 45 days, while $223,060,576.86 was for 60 days.

A statement by the CBN’s Acting Director in charge of Corporate Communications, Isaac Okorafor, said the move was in line with the bank’s determination to ease the foreign exchange pressure on various sectors through forward sales under the new flexible forex regime to keep the market liquid.

Since the modification of the foreign exchange policy by the CBN, over $1bn had been made available to meet the needs of various users of foreign exchange.

During the first intervention in the forex market last week, the CBN offered $500m for sale to banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts.

At the second intervention, a total of $221.3m was made available to 16 banks for forward sales to end-users of forex.

Okoroafor assured that the CBN would continue to make interventions based on qualified bids from the banks on the requests of their customers.

He reiterated that the CBN was more than ever ready to support the inter-bank market by ensuring liquidity and transparency to guarantee efficiency in the forex market.

Okorafor therefore urged all market participants to contribute their patriotic quota and assist in ensuring that the new measures put in place by the CBN guarantee the stability of the financial market as well as the growth and development of the economy to the benefit of all Nigerians.

Meanwhile, the interbank forex market traded $540,000 on Monday in early deals at N375 per dollar, near a record low exchange rate hit last November, Thomson Reuters data showed.

The local currency traded at a record low of 375.50 to the dollar last November on the official interbank market before it reversed the losses.

Traders said banks were selling dollars bought from international money transfer agents to retail customers at N375.

The interbank market traded a total of $3.77 million at multiple exchange rates on Monday, the data showed. It was quoted at 305.25 per dollar at 9:51 am.

In February, the central bank effectively devalued the naira for private individuals, offering to sell the currency at around half the premium charged on the black market, in a bid to narrow the spread on the unofficial market.

The currency was quoted at 465 on the black market, 1.5 per cent down from Friday’s close, as pressure was starting to pile up in that market segment despite a series of central bank intervention on the official market to boost liquidity.

Ok

Good or bad news?

This is a great news for investors, and we hope to see more interventions to increase investment opportunities.


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We hear

nice one

What does this mean?

burkingx:

I first talk am, this my friend get problem. I tire for you, carry go

Good news..... Sai Buhari

africanb:
Good news..... Sai Buhari

go shout am for market

Good news

Tune to Lagos Talks 91.3 fm @ 9am, for Festus Keyamo's version on the Apostle Suleman's scandal, with Jimi Disu!

Abeg, make 1 Economics student come summarize this thing fr me.

Oya naira gbera! Ever since osinbajo took over, evrytin including CBN don de regain their senses. They shld pls infect our grass-cutter SGF n zombies like sarrki, madridguy, omenkalives, ngeneukwenu n their likes

africanb:
Good news..... Sai Buhari

NO TRY AM AGAIN O ABEG

U de find trouble abi . No try dat expensive joke again

africanb:
Good news..... Sai Buhari

I just need $1000 pere

Okay....

This dollars they are pumping can be used for other things. Forget exchange rate let's get productive

ikorodureporta:
Tune to Lagos Talks 91.3 fm @ 9am, for Festus Keyamo's version on the Apostle Suleman's scandal, with Jimi Disu!

We are not intrested because:
1. We have lots of other reasonable things to do with our time
2. Both the Apostle & that harlot are adult
3. The harlot never said that Apostle rape her
4. Theres no concrete evidence(for now) to makes her(otobo) claims genuine

My question is how sustainable is this?
What happen when cbn no longer has fund to inject it will revers

So buckle and enjoy crashing dollars while it last

eleojo23:
What does this mean?

People no go understand dis one nw, But if na 2 insult PMB nw, that one no go hard dem..

You mean it was N305/$ at interbank forex rate?

I am still observing it

Sorry but this doesnt translate to good news to me. This simply shows that the CBN may be in more dire straights and the reason why the are stating this is because news must have gotten out that they wouldnt be able to meet their forward contract obligations. In short a forward is a contract in which parties agree to deliver a certain amount at a certain date. As these are $ forwards, the customer (could be banks,or those authrised to trade with the CBN) has a contract to deliver other currencies ( Im assuming Naira) to the CBN and will get in this case $. They can also choose at the delivery date to pay/receive the difference, depends on the wording of the contract.

Seems they dont have enough $ to meet this and since they are obligated they mahe decided to intervene. I wonder how long they will and can continue to intervene. The Swiss tried for years against the Euro, they ultimately failed.

This is a short term (as most things are in Nigeria, God forbid we try anything long term) plan as usualm and then keeping our fingers crossed hoping it will solve it self.

Let the Naira free float and save yourself the headache, the market is already telling you the worth of the naira, no need trying to keep up the facade which will only cost you $ you urgently need yourself. Its like a unattractive woman applying tons of make up to get a man, wont he see your true face one day, and then what.

Well just my two cents and +20 years in international banking...........

eleojo23:
What does this mean?

eleojo23:
What does this mean?

àwon olodo...see as dem shut u up with jargon...heheheeehe

69MissedCalls:
This dollars they are pumping can be used for other things. Forget exchange rate let's get productive

No country become productive with her currency worthless.
Sensible investors (who drives the economy) wouldn't want to have anything doing with your country.

Trust me, you wouldn't want to go and invest in Zimbia where $1 is about 10000000000Kwacha

I hate all this jargons, simply sale cheap dollars to manufacturers and mandate them to sale cheap products to Nigerians very simple,and u r busy speaking grammar

Buharimustgo:
I hate all this jargons, simply sale cheap dollars to manufacturers and mandate them to sale cheap products to Nigerians very simple,and u r busy speaking grammar

those cheap dollars will still find their way back to the aboki guys, nigerians are just too smart to their disadvantage.