Forex Market Gets $210m Boost

The Central Bank of Nigeria (CBN) has released the sum of $210 million into different segments of the inter-bank Foreign Exchange Market.

Isaac Okorafor, the CBN’s Acting Director in charge of Corporate Communications, who confirmed the figures on Wednesday, said the latest intervention was in line with the “Governor’s commitment to ensure liquidity in the market as well as reduce pressure on the naira”.

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A breakdown of the Bank’s latest round of intervention indicates that the CBN offered the sum of $100 million to dealers in the wholesale window, while those in the Small and Medium Enterprises (SMEs) window received an allocation of $55 million.

The invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals, was allocated the sum of $55 million.

Mr. Okorafor said that the apex Bank was pleased with the current market situation brought about by policies it had put in place to check forex speculatiors, round trippers and rent-seekers.

According to him, these policies had helped to stabilize the exchange rate in addition to the establishment of the Investors-Exporters window, which had increased foreign exchange supply with over $20 billion inflow since its inception.

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The CBN director reiterated the Bank’s determination to continue its intervention in the interbank foreign exchange market with a view to reducing its import bills and checking any haemorhage of its foreign reserves.

The Bank, in its last intervention on Tuesday, April 10, 2018 intervened to the tune of $210 million to cater for requests in the various segments of the forex market.

Meanwhile, the naira continued its stability in the Forex market, exchanging at an average of N360/$1 in the BDC segment of the market on Wednesday, April 18, 2018.

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