By Kayode Tokede
Between the last week in August and first week in September, Investors & Exporters (I&E) Foreign Exchange (FX) window have traded N1.13 trillion total transactions in 10days.
Data gathered from FMDQ OTC securities revealed that investors traded in the specialized Central Bank of Nigeria foreign exchange window in the last week of August was N540 billion but increased to N589 billion in the first week in September.
During the week under review, the apex bank injected total sum of $615 million into the interbank retail Secondary Market Intervention Sales.
The apex bank on Tuesday 4, September, 2018 made available the sum of $210 million to the Foreign Exchange market to strengthen the naira, so as to meet customers’ requests in various segments of the forex market.
The CBN, in its quest to meet customers’ needs in the various segments of the market offered $100 million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got boosted with the sum of $55 million.
According to figures obtained from the Bank, customers requesting foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.
On Friday 7, September, 2018, also, injected the sum of $303.91 million into the interbank retail Secondary Market Intervention Sales.
This is in addition to the sale of CNY 46.58 million in the spot and short-tenured forwards.
The figures obtained from the CBN over the weekend showed that the US dollar-denominated interventions were only for concerns in the agriculture and raw materials sectors.
The Director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said that the exercise which was in tune with the CBN guidelines, were for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.
Okoroafor added that the sales in the Chinese Yuan were through a combination of spot and short-tenured forwards, arising from bids received from authorized dealers.
He noted that availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market.
The CBN spokesman 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.