Nigeria's central bank pumps $293 million into FX market ahead of MPC meeting

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May 19, 2018 5:53 PM

The intervention came ahead of the 261st meeting of the CBN-led Monetary Policy Committee (MPC) scheduled to hold on Monday, May 21 and Tuesday, May 22 at the CBN headquarters Abuja.

Nigerias central bank has lifted the retail secondary market intervention sales (SMIS) of the inter-bank foreign exchange market with the sum of $293 million.

The Central Bank of Nigeria made this intervention on Friday, May 18, 2018, to ensure liquidity in the foreign exchange market.

Isaac Okorafor, the bank’s acting director, corporate communications department, said the sum, as in previous interventions, was in favour of interests in the agricultural, airline, petroleum products, raw materials and machinery sectors.

Okorafor reiterated that the objective of the CBN intervention in the foreign exchange market remained to ensure liquidity in the foreign exchange market and enhance production activities.

He explained that the CBN would continue to ensure liquidity in the inter-bank sector of the market as well as sustain its interventions in order to drive economic growth and guarantee market stability.

Also READ: Here’s why Nigeria may keep multiple forex rates till 2020

This is coming as the Nigerian naira remained stable and exchanged for N361/$1 in the BDC segment of the market on Friday, May 18, 2018.

Meanwhile, the Bureau De Change (BDC) operators have called on the Central Bank of Nigeria (CBN) to review the exchange rate band at its members buy dollars to align with commercial banks’ buying rate.

Aminu Gwadabe, President of Association of Bureaux De Change Operators of Nigeria (ABCON) urged the CBN to merge the BDCs and bank rates to achieve market harmony and level playing field for all stakeholders.

Also READ: These Nigerian agencies failed to remit N8.13 trillion in 5 years into the treasury

He spoke in Lagos over the week ahead of the 261st meeting of the CBN-led Monetary Policy Committee (MPC) scheduled to hold on Monday, May 21 and Tuesday, May 22 at the CBN headquarters Abuja.

The BDCs buy dollars from International Money Transfer Operators (IMTOs) as directed by the CBN at N360/$ and sell at N361.5/$ whereas commercial banks buy at N357/$ and sell at N360/$.

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