The Central Bank of Nigeria has released its 2016 half-year economic report detailing activities in the monetary and fiscal segments of the economy. In one of the segments, the CBN reported that it as sold about $7.8 billion in forex to the interbank market as well as via swaps
According to the bank, a total of US$4.31 billion was sold by the CBN to authorized dealers during the second quarter of 2016. This reflected an increase of 22.7% above the level in the preceding quarter, but a decline of 41.5% relative to the level in the corresponding period of 2015. The development, relative to the preceding quarter, was attributed to the increased intervention by the CBN at the forex market and swap transactions. Of the aggregate, inter-bank and swaps sales were US$3.11 billion and US$1.20 billion, respectively.
Here is a breakdown
|Forex Sales at rDAS/Interbank||10.89||8.17||4.68||4.85||3.78||2.75||3.11|
|Supply of Swaps||nil||1.00||1.25||1.50||1.20||0.74||1.20|
|Supply of Forex to BDC||0.43||0.86||0.97||1.24||0.87||0.02||0.00|
|Total Forex Supply(BDC and rDAS)||12.74||10.92||7.35||8.04||7.01||3.51||4.31|
At $4.3 billion the CBN has now sold about 50% less than what it sold same period last year. In fact, the N7.8 billion sold in the first half of 2016 is about $5 billion lower than the $12.74 billion sold in the second quarter of 2014 when the economy was still rich.
The Government has been battling with lower dollar reserves resulting in a 70% depreciation of the naira at the interbank market. The external reserves is now below $25 billion and barely enough to take care of two months of imports.