CBN Fortifies Interbank Retail Market With $327m

By Dipo Olowookere

The sum of $327.4 million was on Friday released to the interbank retail Secondary Market Intervention Sales (SMIS) by the Central Bank of Nigeria (CBN).

A statement issued by the apex bank disclosed that this is in addition to the sale of CNY 69,707,333.39 in the spot and short-tenored forwards.

According to the Acting Director, Corporate Communications at the CBN, Mr Isaac Okorafor, who issued the statement, the amount was for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.

He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorized dealers.

While noting that availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market, Mr Okorafor attributed the relative stability in the foreign exchange market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market. He further assured that the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the needed foreign exchange by Nigerians.