CBN Sells $6m to 4 Banks at N304.74k

February 23, 2017
cbn benchmark interest rates

CBN Sells $6m to 4 Banks at N304.74k

By Dipo Olowookere

On Tuesday, the Central Bank of Nigeria (CBN) enhanced the supply foreign exchange by selling $6 million to four commercial banks at the rate of N304.74k.

Also, the bankers’ bank sold $115 million to settle invisibles and offered $500 million in special wholesale intervention 60 days forward contract to banks for onward sale to their customers in order to settle mature and past due obligations; although, the banks were able buy only $371 million.

According to the CBN, this is to increase forex availability to end users was against the backdrop of the recent build-up in Nigeria’s foreign exchange reserves amid increased crude oil revenues.

This may have also been influenced by recent calls from the fiscal authority for a review of the exchange rate policy.

Consequently, pressure on the various forex market segments eased up and there is the possibility that the new measures could pave the way for a gradual return of confidence in the foreign exchange market.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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