Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Forex: CBN opens special window for SMEs

Forex
1287 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In
Proshare

Tuesday, April 11, 2017/ 7.15 AM / CBN 

…begins massive sale with $141m

…sells $10,000 each to BDCs   

The Central Bank of Nigeria (CBN) has opened a special Forex window for Small and Medium Enterprises (SMEs) to enable SMEs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter. 

Isaac Okorafor, the CBN spokesman, disclosed this on Monday, April 10, 2017, explaining that the Bank’s special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.  

According to him, “The sum of $20,000 per SME customer per quarter can be effected by telegraphic transfer subject to completion of Form ‘M’ supported with proforma Invoice and the importer’s Bank Verification Number (BVN)” 

Continuing, he said all processing banks are to ensure that the importers submit relevant shipping documents not later than 60 days from the date of the transfer.

Information posted on the CBN website defines Small and Medium Scale Enterprises are enterprises that have asset base (excluding land) of between N5 million and N500 million and a labour force of between 11 and 300. 

Okorafor further disclosed that the Bank had begun the massive sale of foreign exchange in different sectors of the Forex market this week. On Monday, April 10, 2017, the Bank intervened by offering the sum of $100 million to authorized dealers at the forex auction in the interbank wholesale window. It also sold $41 million for BTA, PTA, medical and tuition fees.  

On the BDC segment, the Bank also sold $10,000 each to BDCs to meet the needs of low-end users in the country.

The spokesman said that the dealers in the wholesale segment will have value for their respective bids on Tuesday, April 11, 2017.  

According to Okorafor, the sum of $99,544,417.45 was picked up by dealers out of the $100 million offered by the Bank during the last wholesale auction on April 6, 2017. 

Meanwhile, operators in the Bureau De Change (BDC) segment have duly funded their accounts with the CBN in anticipation of picking up the dollar equivalent ($10,000) on Tuesday, April 11, 2017. Feelers also indicated that the CBN may continue its special intervention in the market with the sale of more dollars to BDCs and in both the retail and wholesale windows in the course of the week.  

Related News

1.       CBN to sustain intervention in FOREX market

2.      FOREX: CBN Offers $100m for Wholesale

3.      CBN Boosts BDCs; Makes $10,000 Midweek Intervention

4.      Forex: Dealers Subscribe Fully to CBN $150m Wholesale Offer

5.      There is Adequate FOREX for PTA, BTA, Tuition & Medical Fees – CBN

6.      CBN to Commence Twice Weekly Forex Sales to BDCs; Increases Sales Amount to $10,000

7.      6th Detail Business Series: Stakeholders examine Nigeria’s Forex Market

8.     FX Utilisation in January 2017-Symptoms of An Opaque Structure

9.      Swiss Franc May be Threatened by the Dollar

10.  Forex: CBN Slashes BDC Rate to N360...$100m Offer Fully Subscribed

11.   CBN Crashes FOREX Rate for Invisibles to N360 to $1; Pumps $185m into FOREX Market

12.  CBN to Sell FOREX to Banks at N357 to $1

13.  Dealers Pick $81.3m Out Of $100m Offered By CBN

14.  CBN Offered Another $100m Despite Drop In Oil Prices

15.   Dollar drops below N400 to US$1 for first time in seven months

16.  CBN Lifts Supply with $180m…Invisibles Get $80m

 

READ MORE:
Related News