May 28, 2022

SB-Accounting

Accounting + Finance Blog

CBN Injects $246.2M For Wholesalers, SMEs, Invisibles Despite Steady Dollar Exchange

Shares

CENTRAL Bank of Nigeria (CBN) on Monday has offered $246.2million to authorized dealers at the forex auction through various windows. These include interbank wholesale window, Small and Medium Enterprises (SMEs) and invisibles segments.

A breakdown of the total offer indicates that $150million was auctioned at the wholesale window while SMEs and invisibles got $52million and $44.2million respectively.

CBN spokesman, Isaac Okorafor, confirmed the offer and sales on Monday, disclosing that the forwards sales would be concluded in the days to come.

He, however, added that the CBN will continue its weekly sale to dealers in the Bureau de Change (BDC) segment this week in order to guarantee onward sale to end users.

According to him, the Bank’s continued interventions in the different segments had guaranteed availability to individuals and business concerns.

He disclosed that the Bank was satisfied with the feedback it received concerning the response of SMEs to access forex from the new CBN window.

He said the CBN was particularly determined to ease the challenges hitherto encountered by small manufacturers hence the move to provide them with easy access to forex.

READ ON  Forex, Banks to start retail process immediately, CBN orders.

“SME operators no longer have to patronise or source foreign through unofficial windows and no more pressure on either the BDCs or any other unofficial source with the opening of the special window,” he added.

It will be recalled that the CBN, also last week, created a Forex window for investors and exporters, which it named: “Investors’ & Exporters’ FX Window.”

The CBN circular, which announced the creation of the new window, disclosed that the purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

        Follow me on TWITTER

Copyright 2020 @ Myfinancein

Shares