optional logo
  • Home
  • About Us
  • Our Services
  • Historical Rates
  • News
  • Blog
  • Contact Us
  • Buy/Sell

News

Reserves inch up to $34.5b as CBN sells $498m in five days

Reserves inch up to $34.5b as CBN sells $498m in five days November 27, 2017

The nation’s foreign exchange (forex) reserves sustained its more than 12-month weekly winning streak, though in slow pace, as it added about $100 million, shoring it up to $34.5 billion.
 

This is coming just as the country expects the inflow of proceeds of the $3 billion Eurobond that was oversubscribed by about $11 billion and split across 10-Year and 30-Year tranches at issuance yield of 6.5 per cent and 7.625 per cent respectively.
 
The rise in the reserves’ profile was recorded despite series of interventions by the Central Bank of Nigeria to support the local currency, which in the last one week, totaled $498 million in two separate sales.
 
Consequently, the naira has maintained stability against the major currencies as data showed that it was able to claim back lost in values in some trading days.
 
Specifically, the exchange rates across segments have oscillated between N359.98 and N364, in response to demand and supply, as well as the quantity of money in circulation.
 
At the popular investors window (I&E Window), the rate slightly recovered from a 15 kobo depreciation on Tuesday, from N359.91/$ on Monday to N360.06/$, to close the week at N359.98/$, indicating a seven kobo gain week-on-week.
 
According to data from Afrinvest Securities Limited, the activity level in the window strengthened compared to that of the previous week, as offshore investors continue to position in Naira assets.Consequently, weekly turnover improved to $727.9 million as at November 24, 2017, against $674.3 million recorded a week earlier, indicating a sustained interest in the window and increasing liquidity in the segment.
 
Before the close of transactions on Friday, the apex bank injected $287.89 million into the Secondary Market Intervention Sales (SMIS) in continuation of its resolve to guarantee liquidity in the foreign exchange market. Data received from CBN revealed that the figure was in favour of the demands by stakeholders in the agriculture, airlines, petroleum products and raw materials and machinery sectors.
 
The bank’s Acting Director, Corporate Communications Department, Isaac Okorafor, who confirmed the figures, noted that the releases were targeted at sustaining liquidity in the market, as well as boosting production and trade activities.
 
As usual, he reiterated that the bank remained committed to ensuring liquidity in the inter-bank sector of the market and would continue to intervene in order to drive growth in the economy and guarantee stability in the market. Earlier in the week, CBN had sold $210 million at the foreign exchange (forex), ahead of the much-anticipated Monetary Policy Committee (MPC) communiqué, which is the last for the year.
 
Figures of the intervention showed that the Wholesale, Small and Medium Enterprises (SMEs) and invisibles segments received allocations in the transactions.
 
Specifically, the bank offered $100 million to the wholesale segment, while the SMEs segment received $55 million and the invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received an allocation of $55 million.

Source: The Guardian

Share this news

Share

Recent News

CBN Intervenes in FX Mkt
Published on March 25, 2019
MPC to retain policy rates as DMO floats N100bn bond auction
Published on March 25, 2019
At $43.507bn, External Reserves Hit five-month High
Published on March 25, 2019

Get the latest rates delivered to your inbox!

About Rexel BDC

Rexel Bureau de Change Limited is a limited liability company incorporated in Nigeria and licensed by Central Bank of Nigeria to buy, sell and deal in foreign currencies and to act as agents and consultants.

Our Services

Business Travel Allowance (BTA)

Personal Travel Allowance (PTA)

International Bill Payments

Tuition Fee Payments

and much more...

Latest Blog Posts

Sample Blog Post Two
Posted on November 11, 2016
Sample Blog Post One
Posted on November 11, 2016
Sample Blog Post Half
Posted on October 12, 2016

Contact Details

177A, Ligali Ayorinde Street, Victoria Island, Lagos, Nigeria.

info@rexelbdc.com

08148415830

Copyright © 2019 Rexel BDC Limited
Powered by Kentico CMS.