CBN begins massive sales of forex in different segments of the market

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[Abuja]–The Central Bank of Nigeria (CBN) had begun the massive sale of foreign exchange in different sectors of the Forex market this week.

Isaac Okorafor, the CBN spokesman, disclosed this on Monday.

On Monday, the Bank offered $100 million to authorized dealers at the forex auction in the interbank wholesale window and sold $41 million for BTA, PTA, medical and tuition fees.

On the BDC segment, the Bank also sold $10,000 each to BDCs to meet the needs of low-end users in the country.

The spokesman said the dealers in the wholesale segment will have value for their respective bids on Tuesday.

According to Okorafor, $99,544,417.45 was picked up by dealers out of the $100 million offered by the Bank during the last wholesale auction on April 6, 2017.

Meanwhile, operators in the Bureau De Change segment have duly funded their accounts with the CBN in anticipation of picking up the dollar equivalent ($10,000) on Tuesday.

Feelers also indicated that the CBN may continue its special intervention in the market with the sale of more dollars to BDCs and in both the retail and wholesale windows in the course of the week.

Speaking on the bank’s special intervention​, Okarafo disclosed that the CBN has opened a special Forex window for Small and Medium Enterprises to enable SMEs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

Small and Medium Scale Enterprises, according to the apex bank, are enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300.

Okorafor explained that the special intervention was initiated based on its findings that a large number of SMEs were being bullied out of the forex space by large firms,

He added that all processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.




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