Naira returns to gain as CBN boosts FX market with $210m

by | December 5, 2017 7:29 pm



The nation’s currency has reversed a N1.00k loss on Monday to gain N0.15k against the US dollar on Tuesday at the inter-bank market after the Central Bank of Nigeria (CBN) on Monday, December 4, 2017, opened the foreign exchange market this week with the injection of another $210,000,000 to sustain liquidity.

After trading on Tuesday, naira closed at N306.85k per dollar as against N307.00/$ traded the previous day at the inter-bank market, data from FMDQ show.

The local currency also appreciated at the Nigerian Foreign Exchange Fixing (NiFEX), gaining N0.38k to close at N330.62k per dollar on Tuesday from N331.00k per dollar on Monday.

However, at the investors and exporters window, the naira was quoted at N360.50k to the dollar on Tuesday losing N0.18k compared to N360.32k traded the previous day.

Isaac Okorafor, acting director, corporate communications department, CBN, said the sum of $100million was offered to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment got an allocation of $55 million. The invisibles segment (i.e. tuition fees, medical payments and Basic Travel Allowance (BTA), among others) was also allocated $55 million.

Okorafor noted that the releases to successful bidders which have since been concluded are part of effort aimed at further enhancing ease of doing business in Nigeria. Hence, beside boosting liquidity in the forex market, facilitating trade and remittances for legitimate personal commitments are also expected to improve tremendously.

Speaking on market conduct, Okorafor enjoined authorized dealers to abide by the extant rules of the forex market as CBN would continue intensify monitoring of the market.

Meanwhile, the naira maintained its steady rate against the United States Dollar, exchanging for N361/$1 in the Bureau De Change (BDC) segment of the market on Tuesday, December 5, 2017.

 

HOPE MOSES-ASHIKE

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