In an operating document obtained by TheCable, the CBN said it would be intervening in the market through the Special Secondary Market Intervention Sales (SMIS).
“In order to further engender market confidence, ensure access to FX by end users and sustain the integrity of the Nigerian Inter-bank FX market, the Central Bank of Nigeria (CBN) has resolved to intervene in the Inter-bank FX market through forward settlement,” the document read.
The bank stated that “this is an important one-off exercise dedicated to the clearance of the backlog of matured FX obligations for: 1. Raw materials and machineries for manufacturing companies; 2. Agricultural chemicals; and 3. Airlines”.
The CBN also added that it would bypass its own directives, as stated in the forex market guidelines.
“Due to the peculiarity of this exercise, the CBN will not apply the relevant provisions under clause 2.4.3 (i) of its Revised Guidelines for the Operation of the Nigerian Inter-bank Foreign Exchange Market (hereinafter referred to as the Guidelines), which provides that “all SMIS bids shall be submitted to the CBN through the FXPDs.
“Consequently, CBN shall receive bids from all the Authorised Dealers.”
The apex bank did not state how much it was willing to sell to clear the backlog in the forex market, but made it clear that all payments would be made in forwards settlement.
Manufacturers and airlines have continued complaining that it had not been getting as much forex as needed for smooth operations. Click to signup for FREE news updates, latest information and hottest gists everyday
Advertise on NigerianEye.com to reach thousands of our daily users
Just imagine! It is a pity. So this is what the clueless incompetent confused ignorant and useless APC government has reduced Nigeria to? Voodoo economic policies. It is a shame. In this age? OK. Who told them that the Airlines won't be doing round tripping? A lot of people and bureau de Change will now use the name of long dead and current airlines to buy and make 😬 billions by selling same in a matter of hours.
ReplyDeleteNigeria is now a Banana Rebublick courtesy of APC purposeless and useless government.
Sai Baba!
Sai Tinubu!
Chanji Dole!