After pumping a total of $768 million into the forex market in one week, the Central Bank Nigeria (CBN) has promised to continue making foreign exchange supply available in the market.
On Friday, the CBN auctioned $418 million at the retail-SMIS at a marginal rate of N310/$ for the airline, agriculture, petroleum and raw materials/machinery sub-sectors.
This was in addition to the sum of $350 million sold at the wholesale auction, BTA/PTA, and school fees during the week.
“In the weeks ahead the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market i.e. PTA/BTA, Wholesale SMIS, Retail SMIS and the BDC,” the bank said in a statement.
The bank also said it will sell short-tenured forwards of 7-30-day maturity to meet the demand of manufacturers and all other foreign exchange users.
“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate FX demand in the market while striving to achieve exchange rate stability in the market,” CBN said.