April 26, 2017
After its announcement last week Friday of a new window dedicated to for trading dollars with investors and exporters, the Central Bank of Nigeria (CBN) yesterday gave the window its debut. How though, did the window perform?
Reuters explains that the CBN sold $25 million to investors and exporters while further selling another $96.37 million in currency forwards at an auction. According to a statement by the CBN spokesperson, Isaac Okoroafor, $150 million was actually planned for the auction but authorized dealers could not fully subscribe.
The statement which further shed light on the window, Okoroafor stated that the role of the apex bank in the new FX Window would be a market participant at the window who would promote liquidity and professional market conduct.
According to him, transactions under the new window include invisible transactions such as loan repayments, loan interest payments, Dividends, Income Remittances, Capital Repatriation, and Management Service Fees.
"Also eligible, are payment of Consultancy fees, Software subscription fees, Technology Transfer Agreements, Personal Home Remittances and other miscellaneous payments as detailed under Memorandum 15 of the CBN Foreign Exchange Manual."
? He said, however, it excludes international airlines ticket sales' remittances.?