CBN sold $543.5 million to banks in September to stabilise forex market: Official
The Central Bank of Nigeria (CBN) says it sold 543.5 million dollars to authorised dealer banks between Sept. 6 and Sept. 30.
According to a statement by Omolara Duke, director, financial markets department of the CBN, the transaction was through a two-way quote at the Nigeria Foreign Exchange Market (NFEM) on 11 dealing days.
Ms Duke said that the spot sales was to reduce observed market volatility driven by high demand for commodity important and seasoned demand for fx.
She said that the value date for all the transactions was T+2.
T+2 refers to the settlement dates of security transactions that occur on a transaction date plus two days.
“This statement is to educate and provide guidance to the general public on the pricing of fx.
“This is by taking a clue from the range of rates at which gx was sold by the CBN to authorised Dealers.
“The CBN will continue to facilitate the supply of fx into the NFEM as part of its holistic fx management strategy,” she said.
CBN had earlier announced the introduction of an Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in NFEM.
Ms Duke said that the new system was expected to enhance governance, transparency, and facilitate a market driven exchange rate that would be accessible to the public.
“This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.
“Authorised dealers will subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately,” she said.
She said that there would be a two-week test run in November, adding that the apex bank would publish real time prices when the EFEMS starts becoming operational.
She said that the CBN would also buy and sell orders from the system and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.
“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.
“Authorised dealers are, therefore, required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market.
“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date,” she said.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette
Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices
Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”
Economy
FG inaugurates OGFZA, NEPZA boards for industrial growth
Trade minister Jumoke Oduwole, while inaugurating the boards in Abuja, said the success of the inauguration would be measured by investments attracted.
States
Kaduna stakeholders seek tighter coordination to drive PASS agric reforms
Stakeholders in Kaduna state’s agricultural sector have called for stronger coordination to accelerate growth and improve outcomes under the Policy on Agricultural Systems Strengthening.
Rights
Lagos: Truck driver bags life imprisonment for killing FRSC officer
FRSC has described the conviction and life imprisonment of Okpara Onyekachi as a victory for justice and road safety enforcement in Nigeria.
Politics
Sealed PDP national secretariat to be reopened Monday, says Anyanwu
The Abdulrahman Mohammed-led Peoples Democratic Party’s National Caretaker Committee says the national secretariat of the PDP will be reopened on Monday.
Economy
MTN Group in talks to acquire remaining stake in IHS Towers
The MTN Group says it is in advanced discussions to acquire the remaining shares in IHS Holdings that it does not already own.
Agriculture
Science-based risk assessment cornerstone of Nigeria’s approach to GMOs, says NBMA boss
Effective communication, transparency, and science-based risk assessments are the cornerstones of Nigeria’s approach to genetically modified organisms.
