The Central Bank of Nigeria (CBN) disbursed a total of 355.74 million U.S. Dollars for raw materials imports in the month of October.
A statement issued late Thursday by the financial regulator says the amount was about 40.99% of the total 867.83 million dollars CBN special interbank foreign exchange package.
Out of the 356 million dollars CBN raw materials FX intervention last month, the highest amount goes to school fees, medicals and other invisibles.
At the second place was petroleum industries with 150.81 million dollars while the manufacturing sector received 91.27 million dollars.
On the list also are agriculture, aviation and finished goods.
The Central Bank says the disbursements were based on a total of 7,792 requests that were received for vital raw materials and spare parts sourcing.
Financial markets across the country closed on Monday and Tuesday this week to commemorate the Eid-el-Kabir holiday.
Meanwhile, at the equities market last week, the Nigerian equities market finished bearish, with the all share index tumbling by 0.65 percent, to 27,577.52.
Total volume traded increased by 6.08 percent to 1.18 billion shares, valued at 10.3 billion Naira, and traded in 16,522 deals.
At the average, Interbank rate climbed by 237 basis points this week, to close at 20.29%.
The CBN conducted multiple OMO auctions totaling, 246 billion Naira, which nearly matched inflows of 293 billion Naira, from maturing OMO bills.
Analysts expect rates to continue to tighten, with no major inflows set to come in, this week.
The Central Bank of Nigeria (CBN) has released the highlights of the much awaited flexible foreign exchange market policy.
The highlights, which are key notes and agreements reached by the CBN, were released on Wednesday, weeks after the Monetary Policy Committee announced the introduction of the policy.
After its meeting of May 24, the CBN said the policy would allow the bank retain a small portion of foreign exchange for critical transactions.
Key notes released stated that the market would operate as a single market structure via the interbank market and authorised dealers and that it would be purely an exchange rate market managed via Thompson Reuters platform.
Part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis.
The primary dealers are also expected to deal with other players in the interbank market.
Other aspects of the key notes are that there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.
The CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed.
The apex bank will also introduce non-deliverable OTC forex settled trades to help moderate volatility. The OTC settled forex feature shall be on non-standardised amounts
Another aspect of the key notes states that proceeds of forex shall be purchased by authorised dealers at the daily interbank rates.
The CBN also released primary dealers operational guidelines, saying that selected dealers would be notified on Friday.
It agreed that interbank trading would begin on Monday, June 20 and tenors and rates for OTC settled forex feature would be announced June 20.
The Central Bank of Nigeria (CBN) has added overseas school fees and medical tourism to its list of items prohibited from the interbank foreign exchange window.
This brings the items on the forex prohibition list to 43 in number.
On Thursday, Governor Adams Oshiomhole of Edo State recommended the addition of the two items to the list.
He was speaking at the Cable Newspaper colloquium in Lagos.
In reaction to the development, the naira has hit a record low of 325 to the dollar while the pound trades for 450.
This follows shortage of foreign exchange caused by importers scrambling for the greenback to meet their obligations overseas.
While traders expect the naira to weaken further in coming days, the CBN official exchange rate has remain unchanged at 197 naira to the dollar.
Nigeria’s Naira shed 0.55 per cent against the dollar on Monday after some customers who failed to meet the cut-off time to submit dollar demand to the Central Bank of Nigeria (CBN) sought the greenback from other sources, dealers said.
On Monday, the unit closed at 200.60 Naira to the dollar, weaker than Friday’s close of 199.50 Naira.
The Naira traded at 215 to the dollar at the parallel market, operated by Bureau de Change agents.
The Nigerian currency crashed through a psychologically important level of 200 Naira to the dollar this month in a rout triggered by weak oil prices and escalating tension over the postponement of a presidential election, prompting the CBN to scrap its bi-weekly forex auctions.
Dealers said some customers submitted their orders to the CBN after a 12:00 GMT cut-off time and were not allotted dollars, leaving them to source hard currency from lenders.
Addax sold $6 million on Monday while Royal Dutch Shell sold an undisclosed amount on the interbank, dealers said. Lenders also resold to their customers at a spread.
The CBN scrapped its bi-weekly currency auctions on Wednesday and a market body said it would sell dollars only at 198 Naira, a move that amounts to a de facto devaluation of the currency of Africa’s biggest economy.