CBN Announces Bids for Retail FX Auction

CBN Announces Bids for Retail FX Auction

The Central Bank of Nigeria (CBN) on Wednesday, July 5, 2017, announced bids for retail auction by authorized dealers in the inter-bank foreign exchange market, following its intervention in other segments of the market on Monday, July 3, 2017, to the tune of $195 million.

Making the disclosure in Abuja, the Acting Director, Corporate Communications at the apex bank, Isaac Okorafor, urged banks to submit requests by their customers to the CBN, after which results of the bids for the retail auction will be released in the coming days.

It will be recalled that the CBN, in its last mediation in the market, injected the sum of $195 million into various segments of the inter-bank foreign exchange market, noting that the move was in continuation of its drive to ensure liquidity and stability in the foreign exchange market.

At the Bank’s intervention on Monday, July 3, 2017, authorized dealers in the wholesale window were offered the sum of $100m. The Bank also allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) window, while it allocated the sum of $45 million for invisibles such as Basic Travel Allowance, tuition and medical bills.

Okorafor had disclosed on Monday that the objective of the Bank’s intervention was to strengthen the international value of the Naira, while also ensuring accessibility to forex by customers requiring it for genuine purposes.

Meanwhile, the Naira continued to maintain its stability in the Bureau de Change (BDCs) segment across major cities of Nigeria, closing at an average of N360/$ on Wednesday, July 5, 2017.