CBN boosts FOREX market with $413.5m

Posted by News Express | 13 June 2017 | 1,587 times

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•CBN Headquarters.

The Central Bank of Nigeria (CBN) has intervened in the inter-bank Foreign Exchange market to the tune of $413.5 million, further underscoring its resolve to guarantee liquidity in the market as well as shore up the international value of the Naira. 

Giving a breakdown of the its latest round of intervention on Monday, the CBN Acting Director for Corporate Communications, Mr. Isaac Okorafor disclosed that the CBN offered $100 million to dealers in the wholesale window, while the Small and Medium Enterprises (SMEs) window was allocated $28 million. The invisibles segment was allocated $25.5 million to meet the needs of those requiring foreign exchange for Business and Personal Travel Allowances, school tuition and medicals, among other needs. 

According to Okorafor, the Bank also 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 would 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 foreign exchange 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 of N362/$1 in the BDC segment of the market on Monday, June 12, 2017.


Source: News Express

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