From January to October of 2022, the Central Bank of Nigeria injected $15.3 billion into the economy to maintain the naira’s value.
The banking regulator’s monthly and quarterly economic reports on the foreign exchange market provided this information.
According to the reports, $1.46 billion was injected into the economy in October, while $4.86 billion, $4.81 billion, and $4.18 billion were injected into the economy in the first, second, and third quarters, respectively.
According to the CBN, “Total foreign exchange sales by the bank to authorised dealers, at $4.86 billion, decreased by 5.8%, compared to the level of the previous quarter.”
“Disaggregation reveals that foreign exchange sales at SMIS windows and interbank/invisibles decreased by 16.9% and 10.8%, respectively, to $0.46bn and $1.79bn, in comparison to the levels of the preceding quarter.
“Similarly, SME interventions and sales at the Investors & Exporters window decreased by 2.0 percent and 26.7% to $0.38 billion and $1.41 billion, respectively, compared to the prior quarter.”
In addition, the amount of matured swap contracts increased by 187.33 percent to $0.82 billion in comparison to the same period last year.
The Central Bank of Nigeria (CBN) reported in the second quarter that “Total foreign exchange sales by the bank to authorised dealers at $4.81bn, decreased by 0.9 percent, compared to the level in the preceding quarter.”
“Disaggregation reveals that, in comparison to the previous quarter, SME interventions and sales at the investors & exporters window decreased by 8.6% and 41.3 percent, respectively, to $0.34bn and $0.83bn.
“However, interbank/invisibles and SMIS windows increased by 5.3% and 14.73% to $0.48bn and $2.05bn, respectively, compared to the amounts in the preceding quarter.”
Similar to the previous quarter, the CBN reported that matured swap contracts increased by 34.6% to $1.11 billion.
It stated, “Total foreign exchange sales by the Bank to authorised dealers decreased in the review period” in the third quarter of 2022. At $4.18 billion, foreign exchange sales decreased 13.1%, falling below the previous quarter’s level.
Foreign exchange sales at the Secondary Market Intervention Sales and Investors’ and Exporters’ windows decreased by 10.5% and 4.3%, respectively, to $1.83 billion and $0.79 billion, according to a disaggregation. In a similar vein, matured swap contracts decreased by 48.9% to $0.57 billion in the second quarter of 2022.
However, sales at the Small and Medium Enterprises and interbank/invisibles windows increased by 32.4 percent and 10.0 percent, respectively, to $0.46 billion and $0.53 billion, according to the CBN.
The CBN reported in October that “Total foreign exchange sales by the Bank to authorised dealers was $1.46 billion, an increase of 31.7%, relative to $1.11 billion in September”
According to the report, a disaggregation revealed that foreign exchange sales at the Small and Medium-Sized Enterprises, Secondary Market Intervention Sales, and the invisibles window increased by 27.0 percent, 21.2 percent, and 61.2%, respectively, to $0.15 billion, $0.58 billion, and $0.24 billion, in comparison to the levels that were observed in the month prior.
“Similarly, matured swap contract rose by 73.4% to $0.36bn, from $0.21bn,” the report stated. However, from $0.15 billion in September 2022, sales at the Investors and Exporters window decreased by 20.3% to $0.12 billion in October.