Nigeria: CBN pumps $370.9 million into interbank forex market
(Ecofin Agency) - The Central Bank of Nigeria has injected $370.9 million into the interbank forex market as part of efforts aimed at easing the difficulties encountered in the funding of foreign exchange transactions.
According to the Acting Director of the corporate communications department at CBN, Isaac Okorafor, the bank’s intervention in the forex market was the first wholesale intervention intended to ease the pressure of access to forex by Nigerians who intend to meet obligations that fall under visible and invisible needs categories.
He explained that the CBN had offered $500,000,000 for sale to banks, but not all offered enough naira backing to pay fully for their respective bid amounts. The qualified bids ranged from N315 to N360 per dollar. Seven banks received full allotments of their respective bids valued at $37,500,000 each while other banks received allotments ranging from $46, 512.50 to $15,578,081.51, a source at the bank said.
CBN on Monday announced fresh policy actions to make forex available for personal and business travels, medicals and school fees to facilitate travelers’ ease in settling transactions. As part of the new policy, the back ordered all banks in the country to open forex retail outlets at major airports and also made direct sales of 6 million U.S dollar to four banks.