The Central Bank of Nigeria continued its regular intervention in the foreign exchange market by injecting an additional $17.81 billion in 2022. This amount was slightly higher than the $16.55 billion injected in 2021, as stated in the CBN’s ‘Financial markets department annual activity report 2022.’
The CBN highlighted that the rise in foreign exchange purchases during 2022 was attributed to increased acquisitions from International Oil Companies.
The report read in part, “In the review period, the Bank maintained its intervention in the inter-bank foreign exchange market to cushion demand pressure and promote exchange rate stability. Consequently, total sales stood at US$17,811.18 million, comprising spot sales of US$7,116.93 million and forward sales of US$10,694.25 million.”
The spot sales were distributed as follows: $2.46 billion was sold on the 1&E window, $1.43 billion at the inter-bank, $1.6 billion was sold to SMEs, and $1.63 billion was allocated for Invisibles, which includes customers purchasing foreign exchange for purposes such as tuition fees, medical payments, and Basic Travel Allowance, among others.
The report read, “The spot sales comprised US$2,463.95 million at the I & E window (otherwise referred as the Nigerian Autonomous Foreign Exchange, NAFEX, market); US$1,426.85 million at the inter-bank; US$1,598.49 million for SMEs; and US$1,627.64 million for invisibles. Conversely, the Bank purchased a total of US$2,169.61 million at the inter-bank market. Thus, net sales by the Bank amounted to US$15,641.57 million. Meanwhile, US$13,530.76 million matured at the forward segment, while US$8,313.73 million remained outstanding in end-December 2022.”
It added, “In the preceding year, total sales stood at US$16,548.63 million, comprising spot sales of US$8,821.05 million and forward sales of US$7,727.58 million. The spot sales comprised US$4,844.52 million at the I & E window, US$1,032.13 million at the inter-bank, US$1,527.50 million for SMEs, and US$1,375.23 million for invisibles. Conversely, the Bank purchased US$1,693.24 million, resulting in a net sale of US$14,813.72 million. US$9,411.36 million matured in the forward segment, while US$4,400.60 million remained outstanding in end-December 2021.