The Central Bank of Nigeria has deposited $300m Banks Money in the last two weeks among hopeless efforts to stabilise the naira -dollar exchange rate.
Wakadaily learnt that, The Association of Corporate Treasurers of Nigeria made the disclosure in an advisory memo made available to its members.
The memorandum part, “We are sure you must have been following up on activities in the foreign exchange market, with rates at the official market going as high as N1850/$.
“If you are not aware, kindly note that the CBN last week sold over $200m to the banks below N1,500/dollar. Similarly, this week, the CBN has on two consecutive days sold FX to banks at rates we understand to be in the $1,450 range. We hope this information helps guide your decisions regarding the rates and spreads you get from your banks.”
An executive committee member of the ACTN, who pleaded anonymity, said the memo was sent to ACTN members to help guide in decision-making between the dramatic fall in the value of the naira.
He noted, “Everything in the memo is correct. The information is from the CBN. We just wanted to keep our members informed on what is happening.”
The dollar sales came on the heels of fast decrease of naira in few weeks. As at January 1, 2024, the naira began the year at N891/$, but has been taken multiple beatings at the official Nigeria Autonomous Foreign Exchange Market and parallel markets.
Although, the local currency gained against the dollar at the parallel market last Thursday and Friday after the CBN in cooperation with the Economic and Financial Crime Commission assault currency traders on the street of Abuja. The currency traders were believed to be speculating against the local currency. The local currency also made up at the official market.
Though, the naira appreciated against the dollar to 1,582/$ at the close of trading activities at the official market on Monday
The NAFEM noted on Friday that data obtained from FMDQ securities, the increase was N12 or 0.75 percent from N1,594.
The local currency, which peaked at a lowest of 1,900/dollar on Thursday rebounded to 1,500/dollar on Friday, following EFCC raids on currency speculators.
Although, the local currency decreased slightly against the dollar at N1,555/$ on Monday evening, according to data collated from some street traders.
EFCC continued to clamp down the rise of naira valued due to black market operators across Abuja and Lagos.
Wakadaily gathered that operators of the Economic and Financial Crimes Commission arrested over 250 BDC operators at the popular Wuse Zone 4 market.
It was learnt that sales were conducted at the offices of the currency traders as stipulated by the CBN.
Earlier in February and in a pushback, the CBN initiated various moves to stock the tenor of the naira.
The CBN change operations for International Money Transfer Operators, restricting their service to inbound transfers with mandatory naira payout on 4 February 2024.
The move has had a profound effect on the activities of major IMTOs, including Western Union and MoneyGram, and is among several measures aimed at stabilising the foreign exchange market.
The CBN directed all banks to process the allowances through electronic channels, to promote transparency and accountability in the forex market.
The CBN urged all authorised dealers and the public to adhere to the new directive promptly to facilitate a seamless transition to electronic payouts.
The Federal Government said he was working on raising $10bn to improve liquidity in the foreign exchange market
The Federal Government reportedly blocked the online platforms of Binance and other crypto companies , to checkmate the unlawfully movement of funds.
It was stated, the move was direct checking the alleged manipulation of the forex market.
Other platforms like Forextime, OctaFX, Crypto, FXTM, Coinbase, were also blocked.
