In order to further ensure liquidity
in the Nigerian Inter-bank FX market, the Central Bank of Nigeria (CBN) has
resolved to intervene in the Inter-bank FX market through forward settlement.
The details of the intervention are
highlighted below:
Type of Intervention: Special Secondary Market Intervention Sales (SMIS) -
Retail. This exercise is dedicated to the clearance of the backlog of matured
FX obligations for:
1. Raw materials and machineries
2. Agriculture
3. Airlines and
4. Petroleum products
PLEASE NOTE THAT PETROLEUM PRODUCTS
TO QUALIFY FOR THIS INTERVENTION THE L/C MUST HAVE MATURED ON OR BEFORE MARCH
31, 2016.
Bid Period: Authorised Dealers shall submit their customers' bids to the
advised e-mail address by 4:00pm today Monday, December 19, 2016. Bids received
after this time shall be disqualified.
Funding: Authorised Dealers should debit the customers' accounts
for the Naira equivalent of their bids.
Settlement Terms of the Special SMIS
- Retail: Whereas the bids are on Spot FX
basis as the Authorised Dealers' accounts with the CBN will be debited in full
for the Naira equivalent of the USD bid amount, the CBN will settle the bids
through forward settlements of 2-, 3-, 4- and 5- months. Customers that are not
willing to accept the settlement terms are advised not to participate in this
Special SMIS - Retail.
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Business