CBN INTERVENES AT INTER BANK WITH $370.8m

Apparently to make good its recent change of gear in the Nigerian foreign exchange market, the Central Bank of Nigeria yesterday, Tuesday February kept the market awash with $370.8m.

The dollars were sold to 23 banks for onward sale to their customers at successful bid rates of between N315 and N360 to the dollar.

In all, seven banks got full allotments of $37.5m each for their successful bids while the rest were allocated between $46.5m and $15.578m depending on how much the. Naira backing for their bids could cover.

Henates understands that the CBN had offered $500m but the final taken up by the banks was determined by Naira backing for bids.

According to CBN acting Corporate Communications Director, Mr Isaac Okorafor, the new wholesale intervention by the CBN in the forex market is aimed at easing access to forex for visible and invisible needs.

On the same bountiful Tuesday, the CBN forwards valued at $216.5m for 30 days and $154.3m for 60 days. This was in addition to $1.5m each to four banks.

On the same day, $41m was specifically offered for payment of school fees, medical bills, basic and personal travel allowance but only $36m was taken up.

Okorafor assured that the CBN is determined to sustain the new policy and urged all stakeholders to help ensure that impact and benefits trickle down to avoid undue depletion of the nation's reserves.

The CBN, we understand, had met with deposit money banks last Friday before announcing its decision to consistently intervene to ensure liquidity and forex access for fees,BTA and others and clearance of backlog.

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