Central bank auctions $195m as BDCs sell at N363

The Central Bank of Nigeria (CBN) has intervened in various segments of the foreign exchange market, offering $195 million. The move was part of concerted efforts to keep exchange rates under control, as it pursues its ultimate goal of convergence.

However, while the national currency lost N2 towards the close of business yesterday at the parallel market, exchanging N370 to the dollar, licensed Bureau De Change (BDC) operators sold at N363, while at the Investors and Exporters window, it maintained stability at N370. A breakdown of yesterday’s intervention showed that authorised dealers in the wholesale window segment received $100 million, while the Small and Medium Enterprises (SMEs) and invisibles segments got $50 million and $45 million.

CBN’s Acting Director, Corporate Communications Department, Isaac Okorafor, who confirmed the figures, noted that the apex bank was impressed by the high level of transparency exhibited by stakeholders in the market. Ahead of the Sallah celebration, the CBN offered $240 million to the Retail Secondary Market Intervention Sales (SMIS) for spot and forward deals, amounting to $435 million since the weekend. The spokesman added that the bank remains upbeat that the naira will further firm up in the coming months.He expressed similar enthusiasm towards the economy, noting that the inflation rate dropped from the 17.24 per cent figure of April to 16.25 per cent at the end of May this year.