Naira strengthens as CBN injects $210m into forex market
In this photo taken Tuesday Oct. 20, 2015, a money changer counts Nigerian naira currency at a bureau de change, where a dollar buys 222 naira compared to the official rate of 198, in Lagos, Nigeria. The IMF is pressing Nigeria to further devalue its naira currency amid uncertainty over the political and economic outlook for Africa's biggest oil producer and economy. Analysts said there's disappointment that President Muhammadu Buhari's long-awaited Cabinet list includes no economic stars. The naira has lost 25 percent of its value in the past year and the stock market has plummeted because of political uncertainty and halved prices for oil that provides most government revenue.(AP Photo/Sunday Alamba)
Nigeria’s currency market maintained stability as the Central Bank of Nigeria (CBN) on Monday injected another $210 million, which helped shore up the value of the naira.
The apex bank intervention was part of measures to ensure the availability of forex and also meet customers’ requests in various segments of the market.
Figures obtained from the bank on Monday, indicate that the CBN offered $100 million to authorised dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received $55 million.
Customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated $55 million.
Consequently, the naira strengthened by 0.12 percent to close at N360.25k per dollar on Monday, as against N360.70k traded on Friday last week at the investors and exporters forex window, data from FMDQ reveal.
However, the local currency weakened marginally by 0.02 percent to close at the rate of N305.80k on Monday from N305.75k on Friday last week.
The bank’s acting director, corporate communications department, Isaac Okorafor, confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids on Tuesday, February 6.
Okorafor reassured the public that the bank would continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability. He added that the steps taken so far by the bank in the management of forex had paid off, as reflected by reduction in the country’s import bills and accretion to its foreign reserves.
Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N360/$1 in the BDC segment of the market on Monday.
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