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The Central Bank of Nigeria announced today that it auctioned $246.2 million to dealers in the interbank wholesale window, the small and medium enterprises (SMEs) window, and invisibles (travel allowances and medical fees) segments of the foreign exchange market.

A breakdown of the total offer indicates that $150 million was auctioned at the wholesale window, while SMEs and invisibles got $52 million and $44.2 million, respectively.

Isaac Okorafor, the CBN’s Acting Director of Corporate Communication, said the apex bank would conclude the FX forwards sales in the coming days. Okorafor also said the CBN would continue its weekly sales to bureau de changes (BDC) this week in order to guarantee onward sale to end users.

Last week, the CBN opened a special window to carter for the FX needs of SMEs, which have been shut out of the FX by wholesale dealers. Okorafor said the apex bank was satisfied with the feedback it has received concerning the response of SMEs to accessing forex from the new CBN window.
 
“SME operators no longer have to patronize or source foreign exchange through unofficial windows and no more pressure on either the BDCs or any other unofficial source with the opening of the special window,” Okorafor said.

In addition to the SMEs FX window, the CBN also created a forex window for investors and exporters – “Investors’ & Exporters’ FX Window”. The CBN said the purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement of eligible transactions.