CBN Sells $195m to Boost Forex Supply

• CBN Sells $195m to Boost Forex Supply

The Central Bank of Nigeria on Monday intervened once again in the foreign exchange Market to boost forex liquidity.

According to the Acting Director, Corporate Communications of the Central Bank, Isaac Okorafor, a total of $195 million dollars was offered.

The acting director said Small and Medium Enterprises segment received $50 million, while the wholesale segment was appropriated $100 million.

The remaining $45 million was allocated to the tuition fees, medical payments and Basic Travel Allowance window.

Okorafor reaffirmed the CBN commitment to rates convergence and price stability.

Last week, the apex bank injected a total of $396.8 million in the various segments of the foreign exchange market.

Experts have said the continuous intervention is aiding consumer prices and general price stability in the country.

Speaking on the effectiveness of the policy, Samed Olukoya, a foreign exchange analyst at Investors King Ltd said: “Pace of increase of the inflation rate has declined for five consecutive months due to the CBN measures at ensuring there is substantial forex liquidity to aid economic activities.”

The consumer prices improved to 16.10 percent from about 19 percent in the last quarter of 2016.

The Naira remains fairly stable, exchanging at an average of N364 to a US dollar in the Bureau de Exchange segment of the forex market.