TheCapital

 Breaking News
  • CORRUPTION: Buhari insists on Magu, pleads for SGF Lawal After weeks of intrigues, President Muhammadu Buhari has renominated Ibrahim Magu for Economic and Financial Crimes Commission (EFCC) chairman. It was also learnt that the Presidency may raise a lobbying...
  • Presidency dispels death rumour, says Buhari alive There was consternation in several quarters in Abuja and beyond over the weekend as rumours circulated that President Muhammadu Buhari had passed on at a London hospital where he was...
  • Sad! IDPs bombed in error escape fresh calamity A fresh calamity almost hit the Internally Displaced Persons (IDPs) camp Rann, Borno State, on Thursday night, 48 hours after its accidental bombing by a Nigerian Air Force plane. This...
  • We’ve no choice but to borrow $30bn — Adeosun The Minister of Finance, Mrs. Kemi Adeosun, on Thursday said that the inability of the Federal Government to generate enough revenue to meet its obligations had left it with no...
  • REVEALED! NAF jet bombed Borno camp thrice, says survivor One of the Internally Displaced Persons in Rann, Borno State, who survived the accidental bombing of the camp on Tuesday, said the Nigerian Air Force fighter jet involved in the...
  • Tragedy as NAF jet bombs Borno IDP camp, kills 100 Tragedy struck in the fight against terror group, Boko Haram, on Tuesday, when a fighter jet involved in the counter-insurgency operation in the North-East fired at aid workers, soldiers and...
  • Members of the House of Representatives, on Monday, grilled the Minister of Finance, Mrs. Kemi Adeosun, and the Minister of Budget and National Planning, Senator Udoma Udo Udoma, on the...
  • Reps grill Adeosun, Udoma on forex crisis, rising inflation Members of the House of Representatives, on Monday, grilled the Minister of Finance, Mrs. Kemi Adeosun, and the Minister of Budget and National Planning, Senator Udoma Udo Udoma, on the...
  • Alleged N23b bribe: 200 INEC officials face panel No fewer than 200 Independent National Electoral Commission (INEC) officials have been queried for allegedly collecting bribe during the 2015 elections. About N23.29billion was allegedly paid out to INEC officials...
  • Let’s go search for Chibok girls in Sambisa, FG tells BBOG The Federal Government has thrown a challenge at the BringBackOurGirls (BBOG) group as it intensifies efforts to find the remaining missing Chibok girls. It has invited the campaigners to be...

CBN sells $1bn to clear backlog of forex demand

CBN sells $1bn to clear backlog of forex demand
December 30
05:56 2016

The Central Bank of Nigeria has sold about $1bn on the forward market to clear a backlog of dollar obligations in selected sectors, according to foreign exchange traders.

The traders said on Thursday that the dollar sale was made last week. They described it as the largest special auction by the CBN since the naira peg was removed in June.

Outstanding dollar demand was about $4bn before June, when the 16-month-old peg was removed. Efforts to cut dollar demand have been largely unsuccessful due to low oil prices.

Crude sales account for about 90 per cent of Nigeria’s foreign exchange earnings.

Traders said the CBN told banks to prioritise airlines, manufacturing firms, petroleum products importers and agriculture sectors, the sectors worst hit by the dollar shortage, in the auction.

“The central bank sold $1bn at last week’s special forex auction and directed banks to issue fresh letters of credit to reflect the amount sold in favour of the affected sectors,” a senior currency trader told Reuters.

Traders said the CBN sold 30-day and 60-day forwards at the auction.

On December 19, the CBN instructed commercial lenders to submit their backlog of dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals for the special forex intervention.

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment