Naira stable as CBN injects $195m into forex market ahead of MPC decisions
by HOPE MOSES-ASHIKE
July 25, 2017 | 11:41 am| | | Start Conversation
Ahead of the decisions of the Monetary Policy Committee (MPC) meeting today the Central Bank of Nigeria (CBN) on Monday, boosted liquidity in various segments of the interbank foreign exchange market with a total of $195 million.
At Monday’s forex trading, the CBN offered $100,000,000 as wholesale interventions and allocated $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.
Naira on Monday gained marginally at the interbank spot foreign exchange market by N0.05k to close at N305.75k as against N305.80k traded on Friday.
At the investors and exporters forex window, naira weakened by N0.93k as it closed at N367.30k from N366.37k per dollar quoted on Friday last week.
The local currency remained stable at the black market trading at the rate of between N365 and N367 per dollar, the same level since the month.
Confirming the figures, the bank’s acting director in charge of corporate communications, Isaac Okorafor, said the bank continued to intervene in the interbank sector in order to ensure adequate liquidity in the market.
According to Okorafor, 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 interbank and BDC segments neared convergence.
Okorafor expressed optimism that the ank’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 thorough 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.
Meanwhile, the CBN on Monday issued a circular on statements of payment finality for the four payment schemes in Nigeria – RTGS, card, mobile, and Ach, cheque and instant payments.
This is in line with its objective of Nigeria Payments System Vision 2020 (PSV2020) project aimed at creating an electronic payments infrastructure that is nationally utilised and internationally recognised.
According to a circular signed by Dipo Fatokun, director, banking and payments system department, this defines the specific point at which payments are deemed to be final and irrevocable and to ensure that no payment system would invoke the principle of ‘unwind.’
The circular read: “The definition for payment finality for each payment scheme is without prejudice to the dispute resolution mechanism, in accordance with the rules and regulation governing the respective schemes.”
The circular revealed that settlement and payment finality happen at the same time on the RTGS system, while on the mobile payment scheme, once payment is confirmed, settlement must be guaranteed.
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