CBN sells $100 million to SMEs

 

AS part of a move to inject liquidity into the official market, the Central Bank of Nigeria on Tuesday said it sold $100 million in spot sales to Small and Medium- Enterprises (SMEs).

CBN on Monday opened a special Forex window for SMEs to enable them import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

Also on Tuesday, the bank said it had sold $100 million that was auctioned on Monday in forwards to be settled between one week and 30 days’ time.

The apex bank explaining that the special intervention was necessitated by its findings that a large number of SMEs were being crowded out of the forex space by large firms.

According to Isaac Okorafor  who is spoke person of the bank said, “The sum of $20,000 per SME customer per quarter can be effected by telegraphic transfer subject to completion of Form ‘M’ supported with proforma Invoice and the importer’s Bank Verification Number (BVN)”

Okorafor further disclosed that the Bank had begun the massive sale of foreign exchange in different sectors of the Forex market this week. On Monday, April 10, 2017, the Bank intervened by offering the sum of $100 million to authorized dealers at the forex auction in the interbank wholesale window. It also sold $41 million for BTA, PTA, medical and tuition fees. On the BDC segment, the Bank also sold $10,000 each to BDCs to meet the needs of low-end users in the country.