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Thursday, April 25, 2024

CBN raises FOREX supply to BDCs, offers $100m for forwards

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In line with its pledge to sustain liquidity in the foreign exchange market, the Central Bank of Nigeria CBN) will from Monday, April 3, 2017 commence twice weekly FOREX sales to licensed Bureaux de Change (BDCs) in the country.

A statement by the Bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, disclosed that weekly sale amount has been increased to $10, 000 (i.e. $5000 per bid).

The statement further disclosed that licensed BDCs are henceforth required to fund their accounts with the CBN on Mondays and Wednesdays while they receive their purchases on Tuesdays and Thursdays, respectively.

According to Okorafor, this strategic move is aimed at ensuring wider spread and liquidity in the market to Deposit Money Banks as well as BDCs.
Meanwhile, the CBN on Thursday, March 30, 2017, offered the total sum of $100 million to authorized dealers to service forwards request by wholesale customers in the interbank market.
It will be recalled that the CBN, in its resolve to sustain liquidity in the FOREX market, on Monday, March 27, 2017, offered $100m in wholesale forwards to DMBs, which was fully taken.

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