January 5, 2021
21 Views

The Central Bank of Nigeria injected $4.37bn into the foreign exchange market in the third quarter of 2020 as part of efforts to ensure the stability of the naira, Economic Confidential reports.

The was revealed by the apex bank in its third-quarter economic report.

The bank said through its periodic interventions in the forex market, it continued to boost the supply side of the market, as COVID-19 crisis weakened the private sector supply chain segment of the market.

Fidelity Leaderboard

Part of the report read, “During the third quarter of 2020, total foreign exchange sales to authorised dealers by the bank amounted to $4.37bn, a decline of 2.3 per cent from the level in the preceding quarter.

“This was attributed largely to the decrease in wholesale forward intervention and interbank sales. The total foreign exchange sales represented a decrease of 56.4 per cent, compared with the corresponding quarter of 2019.”

It added, “Further disaggregation showed that matured swap transactions and SMIS intervention rose by 50.8 per cent and 0.7 per cent to $1.24bn and $1.96bn, from the levels in the preceding quarter.

“However, interbank sales, interventions at the I&E window and SME fell by 22.3 per cent, 18.7 per cent and 3.5 per cent to $0.15bn, $0.39bn and $0.30bn relative to their levels in the preceding quarter.”

Related Posts

According to the report, foreign exchange cash sales to Bureau de Change operators was $0.33bn in the review period.

The CBN said it sustained interventions in the forex market and resumed forex cash sales to the BDC operators to boost liquidity and ease demand pressure.

It said the exchange rate of the naira against the dollar was further adjusted during the review period from N361/$ to N381/$.

It said it also introduced measures to curb abuses and ensure prudent use of forex.

The banking regulator said it directed all authorised dealers to desist from opening Forms M with payments routed through third parties.

This policy was aimed at stopping occurrences of over-invoicing, transfer pricing, double handling charges and avoidable costs, which were ultimately passed on to Nigerian consumers.

The CBN stated that the Deposit Money Banks were directed to block domiciliary accounts of some companies involved in forex abuses, for investigation.



DISCLAIMER : Opinion articles are solely the responsibility of the author and does not necessarily reflect the views of the publishers of ElombahNews!


Would you like to be receiving ALL ElombahNews links ‘On The Go’ on WhatsApp Or Telegram? If yes, join us here on WhatsApp or Telegram, or provide us your Telephone number via publisher@elombah.com or sms/inbox +2349050382526 and you are good to go!


DOWNLOAD ElombahNews mobile app here


Send eyewitness accounts/ reports/ articles  to publisher@elombah.com; follow us on twitter @ElombahNews; like our Facebook page ElombahNews 


For adverts & inquiries, call +447460770987, +2349050382526

You may be interested

News
2 views

SPOMO Act improving Nigeria’s image, says NIMASA DG

admin - April 19, 2021

SPOMO Act improving Nigeria’s image, says NIMASA DG Posted by News Express | 19 April 2021 | 182 times The…

Ekiti cult killings: Police arrests 34 more suspects
News
2 views
News
2 views

Ekiti cult killings: Police arrests 34 more suspects

admin - April 19, 2021

The abductors of the Obadu of Ilemeso Ekiti, Oba David Oyewumi have demanded N20 million ransom from the family for…

News
2 views

Police confirms attack on zonal headquarters in Anambra, provides other details

admin - April 19, 2021

The zonal police headquarters, zone 13 Ukpo, Anambra State has confirmed that its facility was on Monday morning attacked by…

Leave a Comment