CBN spends $11.42 billion in 7 months to defend Naira
The Central Bank of Nigeria (CBN) spent a total of $11.42 billion to ensure exchange rate stability at authorized currency counters between January and July 2022, an increase of +6.23% compared to $10.75 billion in the corresponding period of 2021.
Substantial dollar gains this year have lowered the value of the currency, dragging the naira to an all-time low in the parallel market.
CBN spent $4.86 billion in Q1 2022 and a lower $4.81 billion in Q2 2022.
The amount of currencies sold for this period followed a monthly downward trend, falling -15.4% to $1.750 billion in July from $2.07 billion in June.
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Looking at the windows, the records show that the interbank/dark market and matured swaps fell -22.0% and -59.1%, respectively, in July to $0.13 billion and $0.27 billion, below their respective June levels. However, the Investors and Exporters (I&E), Secondary Market Intervention Sales (SMIS) and Small and Medium Enterprises (SME) windows increased by 5.8%, 0.6% and 65.7% to reach 0 .44 billion dollars, 0.72 billion dollars and 0.19 billion dollars. billion in July.
It further showed that the CBN's intervention depleted external reserves to $37.12 billion from $40 billion in 2021, despite the end of currency sales to exchange offices in July 2021 .
Analysts expect FX sales for the remaining months to be higher as the Naira depreciation has worsened recently, with NAFEX 444.62 at NAFEX and NAFEX 445.30 at I&E at November 30, 2022, compared to N418.45 and N419.50 as of June 30, 2022.
The Central Bank of Nigeria (CBN) spent a total of $11.42 billion to ensure exchange rate stability at authorized currency counters between January and July 2022, an increase of +6.23% compared to $10.75 billion in the corresponding period of 2021.
Substantial dollar gains this year have lowered the value of the currency, dragging the naira to an all-time low in the parallel market.
CBN spent $4.86 billion in Q1 2022 and a lower $4.81 billion in Q2 2022.
The amount of currencies sold for this period followed a monthly downward trend, falling -15.4% to $1.750 billion in July from $2.07 billion in June.
READ ALSO IN NIGERIAN TRIBUNE
Looking at the windows, the records show that the interbank/dark market and matured swaps fell -22.0% and -59.1%, respectively, in July to $0.13 billion and $0.27 billion, below their respective June levels. However, the Investors and Exporters (I&E), Secondary Market Intervention Sales (SMIS) and Small and Medium Enterprises (SME) windows increased by 5.8%, 0.6% and 65.7% to reach 0 .44 billion dollars, 0.72 billion dollars and 0.19 billion dollars. billion in July.
It further showed that the CBN's intervention depleted external reserves to $37.12 billion from $40 billion in 2021, despite the end of currency sales to exchange offices in July 2021 .
Analysts expect FX sales for the remaining months to be higher as the Naira depreciation has worsened recently, with NAFEX 444.62 at NAFEX and NAFEX 445.30 at I&E at November 30, 2022, compared to N418.45 and N419.50 as of June 30, 2022.
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