CBN Injects $280m Forex To SMEs, BDCs As Naira Gains

The Central Bank of Nigeria (CBN) on Tuesday continued its intervention in the foreign exchange segment of the financial market with the injection of fresh $280 million into bureaux de change (BDCs), SMEs and other segments of the economy.

As a result of this, the naira appreciated by 1.2 per cent to N405/$ in the parallel market on news of a 300 per cent increase in dollar supply to BDCs to $40, 000 per week.

The Apex Bank, in a statement issued by the Acting Director, Corporate Communications Department, Isaac Okorafor, said it had also commenced the weekly sale of $20,000 to Bureau de Change operators.

In the statement, the CBN also said it opened bids where it offered $100m wholesale 7-45 days forwards to end-users through the deposit money banks (DMBs).

A summary of the intervention showed that Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80m, while the Small and Medium Enterprises window received $100m.

Okorafor said that the new window for SMEs would boost the operations of small businesses through the importation of eligible finished and semi-finished items.

According to him, this would boost forex supply to the retail business segment of the market.

CBN Launches Form X For SMEs Requiring Basic FX Documentation

He also noted that the CBN introduced the use of Form Q for the SMEs, to ease documentation challenges usually encountered by this category of businesses.

He explained that through this arrangement, SMEs are allowed to purchase $20,000 per quarter.

On the sale of forex to BDCs, the CBN said the decision was taken to ensure that the high volume of demand by low-end users is met promptly.

The post CBN Injects $280m Forex To SMEs, BDCs As Naira Gains appeared first on 360Nobs.com.