The Central Bank of Nigeria (CBN) on Tuesday continued its intervention in the foreign exchange segment of the financial market with the injection of fresh $280 million into bureaux de change (BDCs), SMEs and other segments of the economy.
As a result of this, the naira appreciated by 1.2 per cent to N405/$ in the parallel market on news of a 300 per cent increase in dollar supply to BDCs to $40, 000 per week.
The Apex Bank, in a statement issued by the Acting Director, Corporate Communications Department, Isaac Okorafor, said it had also commenced the weekly sale of $20,000 to Bureau de Change operators.
In the statement, the CBN also said it opened bids where it offered $100m wholesale 7-45 days forwards to end-users through the deposit money banks (DMBs).
A summary of the intervention showed that Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80m, while the Small and Medium Enterprises window received $100m.
Okorafor said that the new window for SMEs would boost the operations of small businesses through the importation of eligible finished and semi-finished items.
According to him, this would boost forex supply to the retail business segment of the market.
He also noted that the CBN introduced the use of Form Q for the SMEs, to ease documentation challenges usually encountered by this category of businesses.
He explained that through this arrangement, SMEs are allowed to purchase $20,000 per quarter.
On the sale of forex to BDCs, the CBN said the decision was taken to ensure that the high volume of demand by low-end users is met promptly.