Banks Pick 68.5%, As CBN Sells $100m In Interbank FOREX Market

To Offer BDCs $20,000 Thursday

Banks and other authorized dealers were only able to pick up $68.51m of the total $100m spot wholesale interventions in the interbank FOREX offered by the Central Bank of Nigeria (CBN) on Wednesday, April 19, 2017, to meet the 7 to 15-day forwards requests of their customers.
This followed the injection of $280m into the Foreign Exchange Market a day earlier.
Confirming the development, Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, attributed the inability of the authorized dealers to fully subscribe to a forex glut in the system, which may lead to further appreciation of the Naira.
He also announced that the apex bank will on Thursday, April 20, 2017 continue its sale of $20,000 to Bureax de Change (BDCs) for onward sale to small-end users.
According to him, the trend monitored by the CBN indicated that deposit money banks are now able to meet the forex demands of their customers within the time frame stipulated.
Speaking further, Okorafor said feedback on the CBN’s forex new window for Small and Medium Enterprises (SMEs) in the country revealed that majority of the small importers were heading for a major boost in their activities.
This, he said, was responsible for the current appreciation of the Naira, stressing that the Naira will continue to gain strength with the relentless efforts of the CBN to supply the market with forex.
The spokesman also reiterated the determination of the CBN to continue intervening in the various sectors of the interbank forex market by guaranteeing access to all categories of customers requiring forex for legitimate obligations and ultimately ensure stability in the forex market.

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