CBN Pumps $185m into Forex Market

By Modupe Gbadeyanka

In order to further ease the Naira against the Dollar, the Central Bank of Nigeria (CBN) has announced the release of $185 million into the foreign exchange market.

The apex bank made this disclosure on Monday when it announced a new forex policy, pegging the retail price of Dollar at commercial banks at N360.

The CBN, through its spokesman, Mr Isaac Okorafor, disclosed that the $185 million was released to Deposit Money Banks (DMBs) in the country to meet the demand of genuine users, especially for those using it for school fees, medicals, BTA and among others.

According to Mr Okorafor, the amount is made up of the sum of $85 million for sale to the DMBs at the rate of N 357/$1 for onward sale to retail end-users at not more than N360/$1.

He explained that the balance of $100 million was offered to authorised forex dealers in the interbank wholesale window to meet the requests of genuine wholesale customers.

Mr Okorafor noted that all banks would receive amounts commensurate with their demand per week, which would be sold to customers who meet usual basic documentary requirements.

He said further that the rates in the interbank window for wholesale transactions would still be determined by activities in the interbank market, adding that all banks have been given directives on this.