CBN Boosts Forex Market With $210m

500 and 1000 naira bills (Nigerian currency)500 and 1000 naira bills (Nigerian currency)

The Central Bank of Nigeria (CBN) has injected $210 million to boost the inter-bank Foreign Exchange Market (FOREX).

The CBN Acting Director, Corporate Communications Department (CCD), Mr. Isaac Okorafor, disclosed this yesterday.

He assured Nigerians that the apex bank would continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

Meanwhile, it was leant that foreign interest made an attempt to destabilise the forex market, as it circulated online a false transactions’ rates in favour of the dollar against the Naira.

In the purported exchange rates across the major currencies, the dollar rose to N383 from N363; but the British pounds lost from N1 from N506 to N505; and the Euro also followed suit, losing N2 from N444 to N442.

The Guardian’s investigations across the parallel market (black market) showed that rates remained the same, an indication of a planned attack on the Naira by the use of false information.

The President of the Association of Bureau De Change Operators, Aminu Gwadabe, described it as falsehood, as the market remained calm, especially with the sustained intervention of the apex bank.

In its determination to meet the needs in the sundry segments of the market, the CBN offered $100million to authorised dealers in the wholesale segment of the market.

According to figures obtained from the bank yesterday, the Small and Medium Enterprises (SMEs) segment got $55 million.

The figures also indicated that customers demanding foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), were also allocated $55 million.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]; Tel: +2347065163489.

Be the first to comment on "CBN Boosts Forex Market With $210m"

Leave a comment

Your email address will not be published.