Forex: CBN to further crash dollar with injection of $240m

. .. Adjusts $10,000 BDCs sale to Tuesday only
. .. Directs banks to pay cash to desiring customers OTC

Against the backdrop of doubts raised in some quarters about the sustainability of the continuous intervention of the Central Bank of Nigeria (CBN) in foreign exchange market, the apex bank on Monday, April 3, 2017 released a new total sum of $240 million.

A breakdown of the forex supplied showed that $90 million was meant to meet requests for invisibles such as BTA/PTA, medicals and school fees, while a total of $150 million was released to authorized FOREX dealers in the interbank wholesales auction window.

CBN’s Acting Director, Corporate Communications, Mr. Isaac Okorafor confirmed the figures, disclosing that the CBN had adjusted BDCs sale days to Tuesdays only to reduce logistical difficulties.

He however pointed out that that henceforth the apex bank would sell $10,000 only to low-end forex dealers’ once a week.
According to him, in a bid to further ease the access of customers, the CBN has also directed all banks to pay cash over the counter to desiring foreign exchange customers.

While urging the banks to oblige the genuine requests of customers, the spokesman advised customers to report any un-cooperative bank to the CBN through available platforms.

It will be recalled that the CBN in the recent months has made offers and released to the inter-bank foreign exchange market in its bid to sustain forex rule supply to different categories users.

He expressed optimism that the sum of $150 million offered to authorized FOREX dealers in the interbank wholesale window to meet the requests of genuine wholesale customers would be fully subscribed at the auction as was the case at the last auction on March 28, 2107.

Meanwhile, the apex bank had earlier vowed to sustain the gains which saw the naira making some gains against the dollar.

The CBN on Sunday reiterated its determination to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance accessibility and affordability for genuine end users.

Mr. Okorafor said the bank wants to disabuse the notion by market speculators that it wouldn’t be able to sustain its forex intervention.

The new injection of $240 million into the forex market is an evident that CBN meant it statement at the weekend that it would again earlier in the week inject more foreign exchange into the market, which it believed would lead to a further weakening of the dollar.

The CBN spokesperson has equally warned commercial banks and other dealers to desist from sabotaging the efforts aimed at making life easier for foreign exchange end users.

The Central Bank of Nigeria (CBN) last week reviewed down the rate at which it was selling dollars to Bureau De Change (BDC) operators nationwide.

Even though the apex bank has not disclose the new rate to be selling to the BDCs, there are indications that BDCs that the buying rate for BDCs on Tuesday would now be N350 and selling rate would be N360 to the dollar.

It is worthy of notes that BDCs were currently buying dollars from the CBN at a forward rate of N381 to the dollar and selling at N399 to the dollar.