In the first six months of 2022, the Central Bank of Nigeria sold $9.4 billion worth of forex in the foreign exchange market.
However, increased foreign exchange interventions by the central bank imply that the apex bank is depleting Nigeria’s reserves, which could have been put to better use. Additionally, the bank disclosed a breakdown of the spot transactions that comprised $2. 07 billion traded through the Investors and Exporters (I&E) window.
Another $834.74 million was sold at the Small and Medium-Sized Enterprises (SMEs), and US$622. 92 million came via inter-bank secondary market intervention sales (SMIS). The central bank confirms that in addition to selling, it also buys foreign exchange, having done so for almost $1.3 billion in the first half of the year.
Market Turnover at the Investors’ and Exporters’ Window In the first half of 2022, the turnover of transactions at the I&E window amounted to $16. 1 billion, compared with US$10. 7billion in the corresponding period of 2021. The central bank also revealed that it has recorded a transaction turnover of just $213.3 billion in end-June 2022.