CBN intervenes in currency market with $210m in June
The Central Bank of Nigeria (CBN) in its periodic intervention, injected $210 million (N75.8billion) into the interbank foreign exchange market as disclosed by a statement from the apex bank.
As disclosed on Tuesday, July 10, 2018, the intervention by the country’s lender is aimed at extending efforts to boost liquidity and alleviate dollar shortages.
A breakdown of the funds injected showed that the bank released $100 million assigned for the wholesale market, $55 million for small businesses and individuals, and $55 million for some dollar expenses such as school fees and medical bills.
Meanwhile, in an earlier statement by Isaac Okorafor, Acting Director, Corporate Communications Department, he said the interventions are to enable market operators meet the requests of customers.
He said that the continued intervention by the bank was in line with Godwin Emefiele, the CBN Governor’s commitment to ensure liquidity in the market and reduce pressure on the naira.
The apex bank through the Acting Directors had earlier disclosed that it was pleased with the current market situation brought about by policies it had put in place to check forex speculators, round trippers and rent-seekers.
According to CBN the policies have helped to stabilise the exchange rate in addition to the establishment of the Investors-Exporters window, which has increased forex supply with over 20 billion dollars inflow since its inception.
“The bank would not relent in its effort to manage the country’s forex with a view to reducing its import bills and checking any hemorrhage of its foreign reserves,” Okorafor had earlier disclosed in a statement.
Meanwhile, the naira continues its stability in the FOREX market, exchanging at an average of N360 per dollar in the Bureau De Change (BDC) segment of the market on Wednesday, 11 July 2018.
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