Nigeria: Apex bank injects $370.9 million into interbank forex market

Feb 24, 2017

This is CBN's first wholesale intervention to relieve the pressure on accessing foreign exchange.

In its bid to ease foreign exchange crisis in Nigeria, the Central Bank of Nigeria (CBN) last Tuesday injected $370.9 million to the wholesale market through 23 Deposit Money Banks (DMBs). The CBN's intervention is designed to help
banks meet the requests of customers. Qualified bids for U.S dollars ranged from N315 to N360, with seven banks receiving full allotments of their respective bids valued at $37.5 million each; other bank
allotments ranged between $46,512.50 and $15.578 million. This development from the CBN is the first wholesale intervention to relieve the pressures to access foreign exchange. The bank while assuring that it will continue to support efforts to make forex easy, also expressed optimism that the intervention will bring about significant relief in the forex market. The CBN spokesman, Isaac Okafor said "the CBN is more than ever ready to support the inter-bank market by ensuring liquidity and transparency to guarantee efficiency in the forex market." The bank urged all market players to contribute their quota to assist in getting the new measures unveiled in place by the CBN to ensure the steady recovery of the financial market. It also directed banks to open forex retail outlets at major airports to facilitate forex transactions for travellers.