The Central Bank of Nigeria, CBN, has injected $15.3bn into the economy to stabilise the value of the naira from January to October 2022.
According to the banking sector regulator’s monthly and quarterly economic reports on foreign exchange market developments, $4.86bn, $4.81bn, and $4.18bn were injected into the economy during the first, second and third quarters, respectively, while $1.46bn was injected in October.
The CBN stated, “Total foreign exchange sales to authorised dealers by the bank, at $4.86bn, decreased by 5.8 per cent, compared with the previous quarter’s level.
“Disaggregation shows that foreign exchange sales at interbank/invisibles and SMIS windows declined by 16.9 per cent and 10.8 per cent to $0.46bn and $1.79bn, respectively, relative to the levels in the preceding quarter.
“Similarly, SME interventions and sales at the Investors & Exporters window, decreased by 2.0 per cent and 26.7 per cent to $0.38bn and $1.41bn, compared with the amounts in the preceding quarter.”
The apex bank added that matured swap contracts rose by 187.33 per cent to $0.82bn, relative to the previous quarter’s level.
In the second quarter, the CBN stated, “Total foreign exchange sales to authorised dealers by the bank at $4.81bn, decreased by 0.9 per cent, compared with the level in the preceding quarter.
“Disaggregation shows that SME interventions and sales at the investors & exporters window declined by 8.6 per cent and 41.3 per cent to $0.34bn and $0.83bn, respectively, relative to the preceding quarter.
“However, interbank/invisibles and SMIS windows, increased by 5.3 per cent and 14.7 per cent to $0.48bn and $2.05bn, compared with the amounts in the preceding quarter.”
Similarly, the CBN stated that matured swap contracts rose by 34.6 per cent to $1.11bn, relative to the previous quarter’s level.
In the third quarter of 2022, it stated, “Total foreign exchange sales to authorised dealers by the Bank decreased in the review period. Foreign exchange sales at $4.18bn, decreased by 13.1 per cent, below the level in the preceding quarter.
“A disaggregation shows that foreign exchange sales at the Secondary Market Intervention Sales and Investors’ and Exporters’ windows, decreased by 10.5 per cent and 4.3 per cent to $1.83bn and $0.79bn, respectively. Similarly, matured swap contracts fell by 48.9 per cent to $0.57bn, relative to 2022, Q2.”
However, the CBN added that sales at the Small and Medium Enterprises and interbank/invisibles windows increased by 32.4 per cent and 10.0 per cent to $0.46bn and $0.53bn, respectively, relative to the levels in the preceding quarter.
In October, the CBN said, “Total foreign exchange sales to authorised dealers by the Bank was $1.46bn, an increase of 31.7 per cent, relative to $1.11bn in September.”
It said a disaggregation showed that foreign exchange sales at the Small and Medium Enterprises, Secondary Market Intervention Sales and the invisibles window increased by 27.0 per cent, 21.2 per cent and 61.2 per cent to $0.15bn, $0.58bn, and $0.24bn, respectively, relative to the previous month’s levels.
The report said, “Similarly, matured swap contract rose by 73.4 per cent to $0.36bn, from $0.21bn. However, sales at the Investors and Exporters window decreased by 20.3 per cent to $0.12bn in October, from $0.15bn in September 2022.”