CBN’s Forex Intervention Drops by $930m

The Central Bank of Nigeria’s foreign exchange intervention in the economy declined by $930m in the third quarter of 2021 to $4.03bn from $4.96bn in Q2.

The CBN disclosed this in its report on the supply of forex for the third quarter of 2021.

Its intervention in the Investors & Exporters, SMEs and the invisible market rose from $2.97bn in Q2 to $3.3bn in Q3, while interbank intervention rose from $540m to $730m.

The CBN’s intervention in the Bureau De Change market was $1.43bn in Q2, but there was no intervention in Q3, according to the report.

The apex bank had in July last year stopped the sales of foreign exchange to BDC operators.

The CBN Governor, Godwin Emefiele, had said at one of the Monetary Policy Committee meetings that the MPC noted with disappointment and great concerns that the BDCs had defeated their purpose of existence to provide forex to retail users.

He said they had become wholesale and illegal dealers.

While announcing its decision to discontinue the sale of forex to them in July, he said the commercial banks would be monitored to provide forex for the legitimate use of Nigerians.

Kehinde Ogunyale

Reporting on the data-driven economy, and investigations.

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