CBN receives $221.3m fresh bid from 16 banks

Ifeanyi Onuba, Abuja

The Central Bank of Nigeria has received a total fresh bid of $221.3m from 16 Deposit Money Banks in the country.

This followed last week’s modification of the foreign exchange policy by the CBN, which saw the reduction of the tenor of the regulator’s forward sales from 180 days to 60 days from the date of transaction.

The amount is expected to be released to the 16 banks within the next 30 to 60 days under the second round of intervention by the CBN.

Figures obtained from the Financial Markets Department of the CBN on Sunday showed that the bids were placed at a value of between N315 to N360 to a dollar by the banks.

An analysis of the forwards sales intervention data showed that 10 banks bid for a total sum of $162.85m worth N54.01bn while the remaining six banks placed a bid for $58.52m valued at N18.68bn.

During the first intervention in the foreign exchange market last week, the CBN had offered $500m for sale to banks, but not all of them provided enough naira backing to pay fully for their respective bid amounts.

The apex bank had expressed optimism that its wholesale intervention would substantially ease the foreign exchange pressure on visible and invisible needs of customers.

The Acting Director of Corporate Communications, CBN, Mr. Isaac Okorafor, has assured that the regulator will continue to make interventions based on qualified bids from the banks on the requests of their customers.

He reiterated that the CBN was more than ever ready to support the inter-bank market by ensuring liquidity and transparency to guarantee efficiency in the forex market.

Okorafor therefore urged all market participants to contribute their patriotic quota and assist in ensuring that the new measures put in place by the CBN guaranteed the stability of the financial market as well as the growth and development of the economy to the benefit of all Nigerians.

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Contact: editor@punchng.com

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