Naira appreciates as CBN maintains liquidity in forex market with $195m
by HOPE MOSES-ASHIKE
October 3, 2017 | 7:59 pm| | | Start Conversation
The Central Bank of Nigeria (CBN), in continuation of its efforts to sustain forex liquidity in the country, on Tuesday, October 3, 2017, intervened in the inter-bank foreign exchange market to the tune of $195 million.
Figures released by the apex Bank show that it offered the total sum of $100 million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received the sum of $50 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.
Consequently, the nation’s currency on Tuesday strengthened across forex market segment. It closed at N360.07k to the dollar, gaining N0.33k over N360.40k per dollar traded last week Friday at the investors and exporters window.
At the inter-bank official foreign exchange market, naira appreciated marginally by N0.05k to close at N305.70k on Tuesday as against N305.75k quoted on Friday last week.
The local currency also gained at the Bureau De Change (BDC) segment of the foreign exchange market gaining N1.00k to close at N364/ per dollar on Tuesday from N365/$ last week.
The acting director, corporate communications department at the Bank, Isaac Okorafor, while confirming the figures, said the CBN was pleased with the state of the Forex market, adding that the Bank will continue to intervene in order to sustain the liquidity in the market and guarantee the international value of the naira.
Okorafor reiterated the apex Bank’s determination to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance accessibility and affordability for genuine end users.
According to him, the Bank remained determined to achieve its objective of rates convergence, hence the unrelenting injection of intervention funds into the foreign exchange market.
It will be recalled that the CBN last week intervened in the various segments of the forex market with the sum of $698.5 million.
Meanwhile, the naira continued to maintain its stability in the forex market, exchanging at an average of N364/$1 in the BDC segment of the market on Tuesday, October 3, 2017.
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