Forex: CBN Injects $340m, CNY 69m into Retail SMIS

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

Friday, July 27, 2018 / 10:05 PM / CBN  

Following last week’s take-off of its intervention in the sale of foreign exchange in Chinese Yuan (CNY), the Central Bank of Nigeria (CBN), on Friday, July 27, 2018, injected the sum $340, 507, 376.51  into the interbank retail Secondary Market Intervention Sales. This is in addition to the sale of CNY 69,858,087.15 in the spot and short tenored forwards.    

The figures obtained from the CBN on Friday, July 27, 2018 showed that the US denominated interventions were only for concerns in the agricultural and raw materials sectors. 

According to the Acting Director, Corporate Communications at the CBN, Isaac Okorafor, the sales in the Chinese Yuan were through a combination of spot and 15-day tenors. He said the exercise, in line with its guidelines, were for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials and machinery. 

Okorafor also explained that the requests attended to were bids received from authorized dealers, adding that the availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market. 

He attributed the relative stability in the foreign exchange market hugely to the continued intervention of the CBN as well as the sustained increase in crude oil prices in the international market. 

The CBN spokesman further assured that the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the foreign exchange required for the business concerns, whether in United dollars of Chinese yuan. 

It will be recalled that the CBN last Friday, July 20, 2018, announced the commencement of its intervention in the sale of foreign exchange in Chinese Yuan (CNY), marking the concrete commencement of the Bilateral Currency Swap Agreement (BCSA) signed with the People’s Bank of China (PBoC) on April 27, 2018. 

The statement announcing the flag-off of the sale had explained that there would be no predetermined spread on the sale of FX Forwards by authorised dealers to end-users under the Special SMIS-Retail, adding that authorised Dealers would be allowed to earn 50 kobo on the customers’ bids. 

Meanwhile, $1 exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY 1 exchanged for N53.35.

 Proshare Nigeria Pvt. Ltd.

Related News

1.       Forex: CBN Flags off SMIS in Chinese Yuan

2.      Nigeria Sells Yuan For First Time as It Deepens China Ties

3.      CBN Issues Regulations for Transaction with Authorized Dealers in Renminbi

4.      The Nigeria and China Currency Swap: How Much Room?

5.      CBN Signs Currency Swap Agreement With the People’s Bank of China

6.      China’s Yuan Achieves Milestone, Becomes A Global Reserve Currency

7.      Naira-Yuan Currency Swap: The Mother of all Deals - Nothing to Cheer

8.      Central banks to restore currency swaps

9.      Could The Renminbi Challenge The Dollar?

10.   Global Liquidity Glut : An Opportunity for Nigeria to Attract FDI –Teriba

11.    Poor Nations v. Rich Nations: Why The Difference?

12.   Africa FICC – In 2018, We Expect Nigeria to Consolidate on the Gains of the Recovery from Recession

13.   What Has Changed In The Discourse? Poverty

14.   Where Does Nigeria Stand In The Midst Of The Current Trade Fog?

15.   Nigeria and the Failure to Boost Foreign Direct Investment

16.   Another Large Injection of Portfolio Monies



Related News