CBN Sells Dollars to Traders to Clear Backlog of Forex DemandCentral Bank of Nigeria sells Dollars to Forex Traders

CBN Sells Dollars to Traders to Clear Backlog of Forex Demand

CBN sells Dollars to Traders. The Central Bank of Nigeria (CBN) has sold $1bn on the forward market to clear a backlog of dollar obligations.

CBN to Auction N142bn in Treasury Bills on Feb 15
Foreign Exchange Inflows into Nigeria Up by 82.5%
Foreign Direct Investment Into Nigeria Shrinks to $669m in 2016

CBN sells Dollars to Traders

The Central Bank of Nigeria (CBN) has sold $1bn on the forward market to clear a backlog of dollar obligations in various sectors foreign exchange traders said.
The traders said on Thursday that the dollar sale was made last week. This was described as the largest special auction by the CBN since the Naira peg was removed in June.

CBN has had High Dollar Demands

Outstanding dollar demand before June was about $4bn, when the 16-month-old peg was removed. Efforts to cut dollar demand have been mainly unsuccessful due to low crude oil prices.

Crude sales account for nearly 90 percent of Nigeria’s foreign exchange earnings.

CBN had told banks to prioritize airlines, manufacturing firms, petroleum products importers and agriculture sectors. These sectors were worst hit by the dollar shortage, in the auction.

Traders said the CBN sold 30-day and 60-day forwards at the auction.

The CBN on December 19, instructed commercial lenders to submit their backlog of dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals for the special forex intervention.

Facebooktwittergoogle_pluslinkedinrssyoutube

COMMENTS

WORDPRESS: 0
DISQUS:
%d bloggers like this: