CBN Pumps Additional $190m Into Forex Market
Godwin Emefiele, CBN Governor[/caption]
The Central Bank of Nigeria (CBN) has, on Monday, pumped additional $190 million into the inter-bank market as part of its efforts to achieve convergence of rates at the foreign exchange market.
This was revealed in statement by CBN’s Acting Director of Corporate Communications, Isaac Okorafor.
The Apex Bank said while it offered $100 million as wholesale interventions, the Small and Medium Enterprises (SMEs) as well as the Business/Personal Travel Allowances Forex windows got $50 million and $40 million respectively.
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The Bank expressed optimism that the naira will gain against the dollar following its performance at both the inter-bank and BDC segments in recent times.
Okorafor noted that the CBN had “exposed and checkmated” speculators by ensuring transparency and fairness in the Forex market.
He said, “The naira continued to maintain its strong stand against major currencies around the globe, exchanging for $364/$1 in the BDC segment of the market on Monday, June 5, 2017.
Okorafor said the CBN is urging all dealers, particularly licensed BDCs to play by the rule, warning that the Bank would not hesitate to penalise any bank or dealer found wanting.
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He further revealed that the CBN had also issued a circular that “permits authorized dealers to sell their excess foreign currency to other authorized dealers without seeking prior approval from the CBN.”
This, he said, is part of CBN’s commitment to continue to develop and improve the foreign exchange market.
