Apex bank in tough exchange rate fight

Bank pushes to harmonise official and black markets

By Ada Anioji

The Central Bank of Nigeria, CBN is pushing on with its fight to reduce the exchange rate in the country.

In the latest of its interventions in the system, foreign exchange dealers were reportedly unable to fully absorb the $150 million offered by the apex bank on Monday.

This was even as the bank aunched a new intervention in the new Investors’/exporters’ FX window with the sale of $25 million to customers.

THe net sum of $150 million was supplied to the interbank wholesale market for auction to authorised foreign exchange dealers.

Giving a brief, CBN spokesperson, Isaac Okorafor, revealed that dealers were only able to subscribe to about $96.37 million. He however did not give reasons for the inability of the dealers to fully subscribe to the offer in the inter-bank market though market watchers are suggesting that thee may presently be a ‘delining demand situation.’

A review of the market performance on Tuesday in some major cities, including Lagos, Abuja and Kano, revealed sustained positive performance of the Naira, with the value of the national currency at about N379 to dollar.

The new forex market window is specifically designed to boost liquidity for investors and exporters of goods and services as well as ensure timely execution and settlement for eligible transactions.

Mr. Okorafor said transactions under the new window include loan repayments, loan interest payments, dividends/income remittances, capital repatriation, management service fees, consultancy fees, and software subscription fees.

Others include technology transfer agreements, personal home remittances and any other eligible transactions, including ‘miscellaneous payments’ as detailed under Memorandum 15 of the CBN foreign exchange manual. It, however, excludes international airlines ticket sales’ remittances.

On the role of the apex bank in the market, Mr. Okorafor said the CBN would be a market participant at the window to promote liquidity and professional market conduct.