CBN injects $250m into Forex Market
by Hope Moses-Ashike
August 29, 2017 | 12:03 am| | | Start Conversation
In this photo taken Tuesday Oct. 20, 2015, a money changer counts Nigerian naira currency at a bureau de change, where a dollar buys 222 naira compared to the official rate of 198, in Lagos, Nigeria. The IMF is pressing Nigeria to further devalue its naira currency amid uncertainty over the political and economic outlook for Africa's biggest oil producer and economy. Analysts said there's disappointment that President Muhammadu Buhari's long-awaited Cabinet list includes no economic stars. The naira has lost 25 percent of its value in the past year and the stock market has plummeted because of political uncertainty and halved prices for oil that provides most government revenue.(AP Photo/Sunday Alamba)
The Central Bank of Nigeria (CBN) on Monday, August 28, 2017, intervened in the Inter-Bank Foreign Exchange Market to the tune of $250m in three segments of the market. In the wholesale segment of the inter-bank Foreign Exchange market, it sold $100m and also uplifted the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $85 million and $65million respectively.
Isaac Okorafor, Acting Director, Corporate Communications Department, while responding to media enquiries, revealed that the apex Bank would pump even more liquidity into the market in the coming days, noting that the move by the CBN was necessary to enhance stability in the FX market.
He reiterated that in a bid to improve liquidity and ameliorate challenges encountered by critical stakeholders at this time of the year, the Bank had ensured that pressures on the market from those seeking forex for school fees and vacations were eased. He said further that the Bank has kept faith with its resolve to ensure that there is sustained liquidity to meet genuine requests for FOREX.
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