Naira to strengthen further as CBN injects $413.5m into forex market
The naira is expected to firm further against foreign currencies following the interventions of the Central Bank of Nigeria (CBN) in the interbank foreign exchange market to the tune of $413.5 million.
This intervention further underscores the CBN’s resolve to guarantee liquidity in the market as well as shore up the international value of the naira.
Giving a breakdown of the bank’s latest round of intervention on Monday, June, the CBN acting director in charge of corporate communications, Isaac Okorafor, disclosed that the CBN offered the sum of $100 million to dealers in the wholesale window, while the Small and Medium Enterprises (SMEs) window was allocated a total of $28 million. The invisibles segment was allocated the sum of $25.5 million to meet the needs of those requiring forex for Business/Personal Travel Allowances, school tuition, medicals, etc.
According to Okorafor, the bank also yesterday released the figures for the auction sales in the retail window last week, totalling $260 million.
The CBN spokesperson said the Bank was optimistic that the Naira will continue its strong run against the dollar and other major currencies around the world, considering that transparency in the market has ensured greater stability.
On the Bank’s objective to achieve convergence between the forex rates at both the inter-bank and BDC segments, Okorafor said the CBN was confident of achieving the goal soon, particularly if all stakeholders played by the rules. He therefore charged all dealers, principally licensed Bureaux De Change (BDCs), to abide by the rule, for the sake of the economy.
Meanwhile, the naira continued to maintain its stability in the foreign exchange market, exchanging at an average rate of N362 per dollar in the BDC segment of the market on Monday, June 12, 2017.
At the investors and exporters window, naira gained marginally by N0.03k as it closed at N373.25k on Monday from N373.28k per dollar.
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