CBN Lifts FOREX Market With $195m

Godwin Emefiele - Governor, Central Bank of Nigeria

The Central Bank of Nigeria (CBN) on Monday continued its intervention in the inter-bank foreign exchange market by injecting a total of $195 million in various segments of the market.

The latest move comes less than 24-hours ahead of the decisions of the Monetary Policy Committee (MPC), slated for Tuesday, July 25, 2017.

According to the CBN’s Acting Director in charge of Corporate Communications, Mr. Isaac Okorafor, the apex bank offered the sum of $100,000,000 as wholesale interventions and allocated the sum of $50,000,000 to the Small and Medium Enterprises (SMEs) forex window.

The invisibles segment comprising Business/Personal Travel Allowances, tuition and medical fees, among others, received $45,000,000.

Mr. Okorafor explained that the CBN will not renege in its bid to ensure adequate liquidity in the market.

According to him, the CBN Management was quite pleased with the performance of the naira against other major currencies around the world, particularly “now that the forex rates at both the inter-bank and BDC segments neared convergence”.

Mr. Okorafor expressed optimism that the Bank’s intervention had put a check on the activities of speculators, just as he underscored the determination of the CBN in sustaining stability in the forex market through monitoring of authorised dealers in order to reduce incidences of sharp practices.

Meanwhile, the naira maintained its steady rate against major currencies around the globe, exchanging for N363/$1 in the BDC segment of the market on Monday, July 24, 2017.

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