FOREX: Dealers fail to subscribe fully to CBN $100m offer

Central Bank of Nigeria (CBN) says authorised dealers were able to subscribe to $65.94 million out of the $100 million offered by it at the inter-bank wholesale transactions concluded on Wednesday, May 3, 2017.
The Bank also on Wednesday offered another $150 million to be auctioned at the wholesale windows of the inter-bank market.
With this development, observers are of the view that the value of the Naira is sure to strengthen against the other international currencies.

Disclosing these to newsmen, the Bank’s Acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, said there was no cause for alarm as the development only proved there was enough to meet the legitimate needs of genuine customers.
He further disclosed that the CBN was in receipt of requests submitted by authorised dealers on behalf of customers for interventions in the retail segment of the market. He, however, added that the CBN will continue its intervention of $20,000 to dealers in the Bureau de Change (BDC) segment this week.

While stressing that the CBN was nearing its goal of rate convergence between that of the inter-bank and that of the Bureau de Change (BDCs), Okorafor reechoed the assurances of the CBN Governor, Godwin Emefiele, to sustain the current levels of interventions in all segments of the market.
Meanwhile, reports gathered in Abuja and Lagos indicate the Naira continued to exchange at an average of N385 to the United States dollar.

On the issue of the banks barred from the Small and Medium Enterprises (SMEs) Forex window, Okorafor said the CBN will ease the suspension immediately any of the erring banks displayed evidence of significant utilisation of the fund allocated to them under the targeted SME window.