Fidelity bank banner UBA banner
Forex: CBN flags off sale of Chinese Yuan

By News Express on 21/07/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 774

•CBN Spokesperson, Isaac Okorafor
•CBN Spokesperson, Isaac Okorafor

The Central Bank of Nigeria (CBN) on Friday flagged off its intervention in the sale of foreign exchange in Chinese Yuan (CNY), signalling the consummation of the Bilateral Currency Swap Agreement (BCSA) signed with the People’s Bank of China (PBoC) on April 27, 2018.

A statement issued by the Bank on Friday disclosed that the sales shall be through a combination of spot and short tenure forwards. It added that the exercise, which shall be Special Secondary Market Intervention Sales (SMIS) retail, would be dedicated to the payment of Renminbi-denominated Letters of Credit for raw materials and machinery and agriculture.

The Bank’s spokesman, Isaac Okorafor, explained that the CBN would receive bids from all authorised dealers. He added that due to the peculiarity of the exercise, the Bank would not be applying the relevant provisions of its Revised Guidelines for the Operation of the Inter-bank Foreign Exchange Market, which direct all SMIS bids to be submitted to the CBN through the Forex Primary Dealers (FXPDs).

According to Okorafor, the CBN would also not be applying the relevant provisions of the Guidelines which equally provide that “Spot FX sold to any particular end-user shall not exceed 1% of the overall available funds on offer at each SMIS session”.

Speaking on the bid period, he said authorised Dealers were requested to submit their customers’ bids from 9.00 am to 12.00 pm on Friday, July 20, 2018, adding that bids received after this time would be disqualified.

On funding, he disclosed that authorised dealers were to debit the customers’ accounts for the Naira equivalent of their bids, stressing that the CBN would debit authorized dealers’ current account on the day of intervention to the tune of the naira equivalent of their bid request.

Okorafor further explained that there would be no predetermined spread on the sale of FX Forwards by Authorised Dealers to end-users under the Special SMIS-Retail, adding that authorised Dealers would be allowed to earn 50 kobo on the customers’ bids.

While also explaining that the bids were on Spot FX basis as the Authorised Dealers’ accounts with the CBN would be debited in full for the Naira equivalent of the USD bid amount, he advised customers that were not willing to accept the settlement terms not to participate in this Special SMIS-Retail.

Similarly, he disclosed that forward bids would be settled through a multiple-price book building process and would cut-off at a marginal rate to be disclosed after the conclusion of the Special SMIS-Retail process. He also urged customers not willing to accept the terms of the forward rate not to participate in this Special Chinese Yuan SMIS Intervention.

Meanwhile, Okorafor emphasised that the CBN reserved the right not to make a sale if it had the impression that the exercise did not provide an effective price for the determination of the CNY/NGN exchange rate.

Source News Express

Posted 21/07/2018 04:59:39 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
Anambra 2013: Group hails Obiano over Guber Debate...

3 die in foiled suicide bomb attack on...

VP Osinbajo retains position as Pastor-in-Charge of RCCG...

2019: OBJ receives Turaki, blames leadership for Nigeria’s...

Ellen Johnson Sirleaf wins $5m Mo Ibrahim Leadership...

Six days after arrest, kidnapper who took Tramadol...

NAFDAC wants stiffer penalty for drug counterfeiters

Obasanjo backs Buhari over ultimatum on Boko Haram...

CAN president charges Osinbajo, Ambode on economic growth...

Boko Haram suicide bombers kill Nigerian refugees

Outrage greets approval of N200m private residence for...

Bayelsa Governor probes election violence

 

Latest News Boko Haram kills another abducted Red Cross worker, threatens to enslave Leah Sharibu Microsoft co-founder succumbs to cancer Presidency reportedly orders EFCC to detain Fayose indefinitely Kano lawmakers probe alleged bribery by Governor Ganduje How I’ll deliver one million votes for Governor Emmanuel’s second term — Elijah Ifot, Akwa Ibom leader in Lagos 2019: NEFAD endorses Atiku, Umahi 2019 Presidency: Igbo Ekunie berates Southeast PDP for position on Atiku’s choice of Peter Obi as running mate Police summons PDP guber candidate over alleged murder 2019 elections: INEC insists Zamfara APC has no candidate Adeleke to be docked 31 October for exam fraud ASUU splits in two over attack on vice-chancellor of FUOYE Atiku can get our economy working again — Spokesman

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (406,535 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,234 views) Shameless Genevieve Nnaji exposes breasts in public (314,580 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (256,586 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,275 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,225 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (203,969 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,464 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,011 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (165,828 views) Lagos plane crash: Journalist releases victims’ names (161,395 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,215 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,680) Business Verdict (52) Columnists (945) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (659) Global Business Monitor (304) International (2,530) Interview (165) Live Commentary (28) Love Matters (145) News (39,629) Opinion (1,123) Pidgin (13) Politics (7,230) Religion (880) Sports (1,730) Stock Watch (35) AMA & Al Jazeera Global Update

 

Zenith Zero Balance

NLNG Expression of Interest banner

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Fulham vs Arsenal 1-5 All Goals & Extended Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement