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The Central Bank of Nigeria (CBN) has announced a $500 million intervention in the FX market using forwards.
The sale will be in the form of a Special Wholesale Intervention Forward not exceeding 60 days, according to a circular to all authorised dealers dated February 21, 2017, seen by Business day.
Authorised dealers are to send their requests not exceeding 7.5% of the amount on offer, while banks shall not exceed their net trading position limits when bidding for the offer.
Nigeria’s Central Bank is trying to ease a severe FX shortage that has hit Africa’s largest economy as the collapse in oil prices hit dollar earnings.
