Naira maintains gain as CBN boost forex market with $503.5m
The naira/dollar exchange rates maintained stability as the Central Bank of Nigeria (CBN) boosted the foreign exchange with a total of $503.5 million interventions last week.
As part of its continued efforts to sustain liquidity in the foreign exchange market, the CBN on Friday injected $308.5 million into the market. This move is expected to further ensure liquidity and stability in the foreign exchange market.
Consequently, the local currency traded stable at the inter-bank official market and the Nigerian Foreign Exchange Fixing (NiFEX) closing at the rate of N305.75k/$ and N329.00k per dollar respectively.
At the investors and exporters however, naira weakened by N0.40k to close at N360.40k per dollar compared to N360.00k per dollar quoted on Wednesday, data from FMDQ show.
The CBN opened the just ended week with a boost of $195 million ahead of MPC decisions. A total sum of $195 million was offered in three segments of the market. In the wholesale Secondary Market Intervention Sales (SMIS), of the inter-bank Foreign Exchange market, it auctioned $100 million and also intervened in the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45 million respectively. This brings the total intervention for the week to a sum of $503.5 million.
The CBN acting director, corporate communications department, Isaac Okorafor who gave the figures in Abuja on Friday, September 29, 2017, announced that the latest intervention of the CBN in the retail segment was part of the regular interventions of the apex Bank, in line with its commitment to sustain liquidity to meet genuine requests in the market.
While warning against speculations in the market, Okorafor said the CBN had put necessary checks in place to guard against the activities of speculators. He stressed the determination of the Bank to continue its forex intervention. He encouraged genuine users of foreign exchange to approach their banks, as the banks had enough forex to meet their demand.
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