The Central Bank of Nigeria (CBN) on Friday supplied $331.41million to the retail Secondary Market Intervention Sales’ (SMIS’) segment of the foreign exchange (Forex) market as part of its sustained efforts to ensure adequate liquidity in the market
The Friday’s intervention came barely 48 hours after the apex bank sold $210 million in the Inter-Bank segment of the market.
Analysing the allocations to the various sub-segments of the retail SMIS, the Bank’s Acting Director, Corporate Communications, Isaac Okorafor, stated that the sale was specifically targeted at end users in agricultural, airlines, petroleum products and raw materials and machinery sectors.
He assured that that the CBN would continue its interventions in the forex market in order to guard against illiquidity and checkmate actions of speculators that could trigger undue pressures on the nation’s foreign reserves.
Reiterating the assurances of the CBN Governor, Godwin Emefiele, the bank’s communication chief maintained that the apex bank had enough to meet the foreign exchange requests of various customers.
He therefore charged every customer requiring foreign exchange to approach their respective banks with relevant documents to make formal requests, stressing that the authorized dealers had enough supply to meet every legitimate request.
To meet the surging forex demands in recent weeks occasioned by increased purchases by pilgrims and other customers, the CBN had directed Deposit Money Banks (DMBs) sell forex over-the-counter to traveling customers and non-customers of banks provided they present relevant and valid travel documents
The CBN Governor had last Monday paid unscheduled visits to some banks in Lagos to monitor the level of compliance with the directive.
Similarly, the bank also mandated licensed Bureau de Change, BDCs, operators to henceforth access forex from the CBN, at least thrice weekly, failing upon which the regulatory financial institution could review their licences.
