May 28, 2022

SB-Accounting

Accounting + Finance Blog

CBN to sustain intervention in FOREX market for Airlines, Agriculture, Others

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The Central bank of Nigeria, CBN, through it’s Acting Director, coporate communications has released a statement that states that it has auction US$418 million at the retailed- SMIS for N310 per dollar for airlines, agriculture, petroleum and raw materials/machineries sub sectors.

This was in addition to the sum of US$350 million sold as wholesale auction, BTA/PTA, and school fees during the week.

According to the report, “In the weeks ahead the CBN will sustain its intervention through the
sale of foreign exchange to all segments of the market i.e. PTA/BTA.”

“Wholesale SMIS, Retail SMIS and the BDC. The Bank will sell short tenured forwards of 7-30-day maturity to meet demand of manufacturers and all other foreign exchange users.”

“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate FX demand in the market while striving to achieve exchange rate stability in the market.”

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