The Central Bank of Nigeria, CBN, disbursed about $16.9 billion 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 show 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.”
Vanguard