CBN Boosts Forex Supply With Fresh $195m

• CBN Boosts Forex Supply With Fresh $195m

The Central Bank of Nigeria on Tuesday released fresh $195m into the foreign exchange market as part of its wholesale intervention to ensure liquidity in that segment of the market.

The release was confirmed in a statement signed by the Acting Director of Corporate Communications Department, CBN, Mr. Isaac Okoroafor.

Okoroafor said the intervention was made up of $150m for the wholesale auction and $45m in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance and Business Travel Allowance.

“The Central Bank of Nigeria on Tuesday, March 14, 2017, sustained the supply of foreign exchange to the market by concluding arrangement to release the sum of $195m comprising of $150m for the wholesale auction and $45m in the invisible segment for such items as medical fees, tuition fees, Personal Travel Allowance and Business Travel Allowance,” the statement reads in part.

Okoroafor stated that the apex bank acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.

He also alluded to the fact that Deposit Money Banks were becoming saturated with foreign exchange as most of them were now able to meet demands for foreign exchange within the stipulated timeframe.

“As you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forex,” he said.

He reiterated the apex bank’s determination to continue to fund the importation of raw materials and plants and machinery for manufacturing, agriculture and other eligible items.

He also gave an assurance that the CBN remained resolute in ensuring stability in the forex market by keeping an eye on the activities of authorised dealers in order to ensure that sharp practices were reduced to the barest minimum.