CBN Injects Fresh $250m Into Forex Market

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  • CBN Injects Fresh $250m Into Forex Market

The Central Bank of Nigeria on Monday intervened with another sum of $250m in the foreign exchange market.

The regulator said in a statement that the move was meant to keep the inter-bank foreign exchange market liquid.

A breakdown of Monday’s intervention indicated that the wholesale sector was offered the sum of $100m, just as the Small and Medium Enterprises window received a boost of $80m.

Those requiring foreign exchange to address needs such as Business/Personal Travel Allowances, school tuition, medicals, among others, were allotted the total sum of $70m.

The bank’s Acting Director in charge of Corporate Communications, Isaac Okorafor, said the interventions had ensured stability in the market, even as he stressed that the CBN remained committed to maintaining transparency in the market.

According to him, CBN has taken measures to check the activities of speculators and shield the currency from attacks, while also maintaining the international value of the naira.

While assuring that authorised dealers had enough funds to meet the foreign exchange needs of customers, Okorafor urged all to adhere to the extant guidelines on the sale of forex in the nation’s forex market.

He therefore advised those in genuine need of forex to continue to approach their respective banks for purchase.

He said the bank remained very optimistic that the Nigerian currency would fare strongly against other notable currencies around the world.

On the convergence target of the bank between the forex rates at the inter-bank and the Bureau de Change, he said the goal would be attained if all stakeholders played by the rules.

The CBN last week assured customers of adequate foreign exchange in the market, dispelling fears of a scarcity of foreign exchange in the Nigerian forex market.

Meanwhile, the naira exchanged at the Bureau de Change segment of the market on Monday, at the rate of N365/$1.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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