About $16.9 billion has been disbursed by the Central Bank of Nigeria, CBN in its foreign exchange market interventions and statutory obligations in the first half of 2022, H1’22, about 4.0 percent drop against $17.6 billion sold in the corresponding period of 2021, H1’21.
Details of the transactions reveal the amount covers the inter-bank window sales worth $940.92 million, swap ($1.92 billion), Investors and Exporters window ($2.24 billion), Secondary Market Intervention Sales, SMIS ($3.83 billion), Small and Medium Enterprises, SMEs ($722.26 million), drawings on Letters of Credit ($749.27 million), External Debt Service ($1.36 billion), Forex Special Payment (Cash Swap/FX Advance/to Ministries Departments and Agencies, MDAs) ($129.13 million), Other Official Payments ($1.24 billion), Bank Charges ($27.24 million), Funds returned to remitters ($5.27 million) and 3rd party MDA transfers ($2.78 billion) and others ($913.05 million). The data also showed that foreign exchange sales to authorized dealers by CBN fell Year-on-Year, YoY, by 14 percent to $9.67 billion in H1’22 from $11.3 billion in H1’21.
A breakdown showed that SME interventions and matured swap contracts declined YoY by 3.6 percent and 7.2 percent to $720 million and $1.92 billion in H1’22 from $747.68 million and $2.07 billion respectively in H1’21.
However, sales at the investors & exporters window, interbank/invisibles and SMIS windows, increased by 21 per cent, 34.8 per cent and 24 percent to $2.24 billion, $940.92 million and $3.83 billion compared with $1.84 billion, $697.6 million and $3.08 billion respectively in 6m’21. In its Q2’22 Economic Report the CBN noted that forex sales to authorised dealers fell QoQ by 0.8 percent to $4.81 billion in Q’22 from $4.85 billion in Q1’22.
The report stated: “Total foreign exchange sales to authorised dealers by the Bank at $4.81 billion, decreased by 0.9 per cent, compared with the level in the preceding quarter.
“Disaggregation shows that SME interventions and sales at the I&E window declined by 8.6 per and 41.3 per cent to $0.34 billion and $0.83 billion, respectively, relative to the preceding quarter. However, interbank/invisibles and SMIS windows, increased by 53 per cent and 14.7 per cent to $0.48 billion and $2.05 billion, compared with the amounts in the preceding quarter. “Similarly, matured swap contracts rose by 34.6 per cent to $1.11 billion, relative to the previous quarters level.”
