Central Bank Sells Another $297m to Aid Naira Value

• Central Bank Sells Another $297m to Aid Naira Value

The Central Bank of Nigeria, CBN, on Friday sold another $297 million to prop up the Naira value and boost foreign exchange liquidity at the secondary forex market.

Speaking on the intervention, the CBN Acting Director, Corporate Communications Department, Mr. Isaac Okorafor said the apex bank was resolute in its determination to stabilize the Naira and converge the foreign exchange rate.

“The central bank will continue to boost forex liquidity and ensure timely execution and settlement of eligible transactions.”

Okorafor said the intermittent intervention will ensure forex availability to genuine individuals and businesses, and further deepened central bank ongoing strategy at converging forex rates.

The central bank intervention has bolstered Naira outlook going into the second half of the year and positioned the local currency for further gain as the apex bank looks to rein in consumer prices and support growth.

Experts at Investors King Ltd projected marginal decline in the headline inflation rate to 16.02 percent in August, down from 16.05 percent recorded in July. However, pointed out a slowdown in the pace of improvement in the recent months.

“The pace of decrease is gradually stalling, therefore, continuous intervention and Naira appreciation is needed to curb surging consumer prices,” said Samed Olukoya, a foreign exchange analyst at Investors King Ltd.

“With a total of $547 million injected in the last one week, we expect the Naira to appreciate further in coming days.”

The Naira has gained N5 in the last one week to trade at N365 on the parallel market.