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CBN defends naira with $9.5bn in 6 months - DAILY TRUST

NOVEMBER 08, 2018

The Central Bank of Nigeria (CBN) half year activity report 2018 has shown that the bank expended $9.499bn to defend the naira.

The report was released yesterday by the apex bank.

“A total of $9.499bn was sold at the foreign exchange market. This comprised $1.546bn at the inter-bank spot, $768.70 million for invisible, $637.00 million for SMEs, $1.236bn at the I & E window, while forwards sales were $5.311bn.”

The report also noted that on “the other hand, the Bank purchased $6.436bn at the inter-bank market which resulted in a net sale of US$3,063.44 million by the Bank. The sum of $5.681bn matured at the forwards segment, while $1.469bn was outstanding at end-June 2018.”

The CBN indicated that the increased transactions in 2018 were attributable to the Bank’s foreign exchange management strategy of sustaining liquidity in the market and maintaining exchange rate stability.

It said “the high level of activity was attributable to sustained monthly disbursements to the three tiers of government by the Federation Accounts Allocation Committee (FAAC), high volume of CBN Bills maturities and the frequency of auctions.”

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