CBN’s $500m supply jolts FX market

Nigeria’s FX market was shaken-up Tuesday following a huge intervention of $500 million by the Central Bank which is stepping up efforts to halt the devaluation of the naira on the blackmarke.
Earlier in the morning, the apex bank had released to each of the banks the pledged allocation of $1 million and above to meet the school fees, BTA and PTA as well medical needs of bank customers.
Shortly after, the apex bank followed with a two page circular titled “CBN special wholesale intervention 60 days forward of February 21, 2017” with the purpose of clearing some of the outstanding FX obligations which the banks carry.
The banks were given till 11am to submit their bid requests for the special intervention.
Bankers say the move will moderate rates especially on the parallel market where the Naira hit an all time low of N520 to the dollar on Monday.