CBN Vows To Continue Forex Intervention
The Central Bank of Nigeria, on Sunday, vowed to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance access for genuine end users.
Mr. Isaac Okorafor, the Acting Director, Corporate Communications, CBN, stated this in a statement issued in Abuja.
Recall that the apex bank on Friday auctioned the sum of $418m at the retail-SMIS at a marginal rate of N310 per dollar.
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According to Okorafor, aviation, agriculture, petroleum and raw materials/machineries are the sub-sectors to benefit from the auction.
The statement read in part, “In its avowed determination to ensure ample supply of foreign exchange liquidity in the market, the Central Bank of Nigeria on Friday, 7th of April, 2017 auctioned the sum of $418m at a marginal rate of N310/$.
“This was in addition to the sum of $350m sold as wholesale auction during the week. In the weeks ahead, the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market.”
The statement said the CBN would sell short-tenured forwards of seven-day to 30-day maturity to meet the demand of manufacturers and all other foreign exchange users.
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The apex bank said the injection of foreign exchange into the market should reassure all users of its determination to continue to meet all legitimate forex demand in the market.
It added that the intervention was part of measures to achieve exchange rate stability in the financial market.
