Naira firms as CBN injects another $210m into forex market

by | April 24, 2018 11:25 pm

The Central Bank of Nigeria (CBN) on Tuesday stepped into the inter-bank sector of the Foreign Exchange market, yet again, intervening in the wholesale segment and other sectors of the market to the tune of $210 million.

Consequently, the nation’s currency appreciated by 0.15 percent against the U.S dollar. After trading on Tuesday, naira closed at N360.00k per dollar as against N360.54k/$ traded the previous day at the investors and exporters forex window, data from FMDQ revealed.

There was no record change in the rates at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) and the CBN official rates as the local currency was quoted at N360.08k per dollar and N305.65k respectively, the same level traded on Monday.

Figures released by the Bank on Tuesday, April 24, 2018, reveal that the Wholesale sector of the market got another injection of $100 million, just as the Small and Medium Enterprises (SMEs) and invisibles sectors each received $55 million.

Confirming the figures, the Acting Director, Corporate Communications Department at the CBN, Isaac Okorafor, said that Tuesday’s interventions, like the previous intermediations, were in line with the Bank’s commitment to sustain the high level of stability in the Forex market and continually ease access to the currency by those requiring it for genuine activities.

Okorafor, while commending the role of every player in the market, said the CBN was ready to inject funds into the market, whenever and wherever necessary, in order to maintain market stability as well as sustain the financial system.

He also said the financial regulator was further buoyed by recent gains in the foreign exchange sector, which had seen the country’s reserves soar closer to the $50 billion mark.

Speaking further, Okorafor said the country’s reserves continued to enjoy accretion, adding that the present reserves status at the Bank meant that the CBN was capable of sustaining foreign exchange liquidity in the system.

Tuesday’s intervention came as one United States Dollar (US$1) exchanged for N361 in the Bureau De Change (BDC) segment of the market.

Meanwhile, it will be recalled that the CBN in its last interventions on Friday, April 20, 2018, injected the sum of $396.18million into the Retail Secondary Market Intervention Sales (SMIS).