Business

CBN boosts liquidity at retail market with $331.41m

CBN-2

The Central Bank of Nigeria (CBN) on Friday, June 1, 2018 sold a total of $331.41million to players in different sectors in the Retail Secondary Market Intervention Sales (SMIS).

Consequently, naira dollar exchange rate strengthened across various segments of foreign exchange market as the CBN continues to guarantee foreign exchange liquidity.

Naira closed at N360.85k per dollar on Friday at the investors are exporters forex window, gaining 0.03 percent over the level of N360.97k/$ traded the previous day, data from FMDQ indicated.

At the black market, the local was stable, trading at N363 per dollar, while it weakened at the CBN official window to N306/$.

Friday’s sale of the greenback by the CBN came closely on the heels of its intervention in the wholesale segment of the market on Wednesday, May 30, 2018, when it pumped the sum of $210 million in the inter-bank forex market.

Confirming the releases, the Bank’s Acting Director, Corporate Communications, Isaac Okorafor said companies in the agricultural, airlines, petroleum products and raw materials and machinery sectors were the beneficiaries of the intervention.

Okorafor explained that the CBN continued to make interventions in the forex market in order to guard against illiquidity and checkmate actions of speculators that could mount pressure on the country’s reserves.

The CBN on Friday extended the date for the implementation of the Regulatory frame work for the use of Unstructured Supplementary Service Data (USSD) in the Nigerian financial system to October 2018. This was supposed to have taken effect from today June 1, 2018.

The CBN stated this in a circular to all Deposit Money Banks (DMBs), Mobile Money Operators (MMOs), Payment Solution Service Providers (PSSPS) and other service providers.

The circular signed by Dipo Fatokun, Director, Banking and Payments System Department, the date was extended in order to fully realize the objective of the frame work.

Reiterating the assurances of the CBN Governor, Godwin Emefiele, he said the Bank was buoyant enough to meet the foreign exchange requests of various customers cut across the different segments of the market.

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.

Emefiele had last Monday paid unscheduled visits to some banks in Abuja, to monitor the extent of compliance with the CBN directive to deposit money banks (DMBs) in the country to buy and sell foreign exchange over-the-counter to traveling customers and non-customers of banks provided they present relevant and valid travel documents.

The CBN in that directive also mandated all Bureau de Change (BDCs) to henceforth access forex from the CBN, at least thrice weekly, failing which the CBN could review their licenses.

It will be recalled that the Bank, on Wednesday, May 30, 2018 offered the sum of $100 million to authorized dealers in the wholesale segment of the market, just as the Small and Medium Enterprises (SMEs) segment and the invisibles window each received $55 million.

Meanwhile, the Naira, yesterday, Friday, June 1, 2018, exchanged at an average of N361/$1 in the BDC segment of the market across major cities in the country.

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Categories: Business