Dollar glut, as banks fail to gulp CBN’s $100m offer

The Central Bank of Nigeria (CBN) says authorized dealers were able to subscribe to $65.94 million out of the $100 million offered by it at the inter-bank wholesale transactions concluded yesterday indicating emergence of dollar glut in the market.

Also the naira remained stable at N391 per dollar at the parallel market yesterday even as the apex bank sold $20,000  to each bureau de change (BDC) yesterday.

Meanwhile, the CBN yesterday  offered another $150 million to be auctioned at the wholesale windows of the inter-bank market.

Acting Director in charge of Corporate Communications Department, CBN Mr. Isaac Okorafor disclosed this, saying  there was no cause for alarm as the development only proved there was enough to meet the legitimate needs of genuine customers.

He further disclosed that the CBN was in receipt of requests submitted by authorized dealers on behalf of customers for interventions in the retail segment of the market. He, however, added that the CBN will continue its intervention of $20,000 to dealers in the Bureau de Change (BDC) segment this week.

While stressing that the CBN was nearing its goal of rate convergence between that of the inter-bank and that of the Bureau de Change (BDCs), Okorafor reechoed the assurances of the CBN Governor, Godwin Emefiele, to sustain the current levels of interventions in all segments of the market.

On the issue of the banks barred from the Small and Medium Enterprises (SMEs) Forex window, Okorafor said the CBN will ease the suspension immediately any of the erring banks displayed evidence of significant utilization of the fund allocated to them under the targeted SME window.Vanguard