CBN Has Sold $1.2 Billion In One Month Defending The Naira  

Nairametrics| The Central Bank of Nigeria’s spokesperson, Isaac Okorafor, has explained that the benefits of the revised forex policy has made a positive impact on both banks and importers.

For the banks, Okarafor said the uniqueness of the wholesale forwards was that banks were allowed to use their winnings from auctions to fund matured obligations to meet letters of credit remittances, extinguish bills for collection and other forex demands.

As for importers, the CBN spokesperson explained that they now have cheaper and easier sources of forex.

“With this development, importers who had hitherto been using bills for collection will now experience relief instead of having to patronize other more expensive sources,” Okarafor said.

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The CBN has so far lived up to its promise to provide a sustained input of forex into the nation’s economy for Nigerians who have legitimate use for it. Only yesterday, the apex bank offered another $100 million for wholesale requests, out of which $70 million was sold to meet requests for business/personal travel allowances, BTA/PTA.

This represents a fourth consecutive week of dollar injection into the market following a $500 million intervention 3 weeks ago, $270 million a fortnight ago and $367.13 million last week. Speaking on the regulator’s commitment to ensure that forex scarcity is a thing of the past, Mr. Okorafor said

“The Bank remains resolute in ensuring that it supplies enough FOREX to genuine customers of deposit money banks and increase liquidity in the market,”

Initial fears from critics of the revised forex policy centered around the sustainability of the CBN’s frequent intervention to meet the dollar needs of Nigerians, which many believe to be insatiable. So far, so good, however, as the CBN has been living up to its promise. For how long it can continue to do this remains the unanswered question.