The Central Bank of Nigeria sold a total of $9.4 billion in forex in the foreign exchange market first 6 months of 2022. This compares to $5.8 billion sold in the first half of 2021.
This is according to data released by the apex bank in its half-yearly economic report.
Nigeria’s central bank intervenes in the foreign exchange market via spot and forward sales at the investors and exporter windows, directly to SMEs and via its Small and Medium Enterprises (SMEs) and inter-bank Secondary Market Intervention Sales (SMIS).
Why you need to know: The central bank sells forex as part of its policy of intervention in the foreign exchange market.
Breakdown of FX sales: According to the central bank, it sold a total of $9.4 billion in first half of the year with 47.5% of it or $4.38 billion sold via the sport market. The means it sold at the prevailing price on the day.
Apart from selling, the central bank also purchases forex, conforming that it bought around $1.3billion in the first half of the year.
Trade on the I&E Window: The apex bank also provided details of transactions and the importer and exporter window where forex is sold officiallu.
Our interpretation: Nigeria’s forex demand in the official investors and exporter window is still largely catered for by the central bank.
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