CBN injects $142.5m into forex market

Posted by News Express | 11 July 2017 | 1,734 times

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•CBN headquarters

The Central Bank of Nigeria (CBN) on Monday injected $142.5 million into the inter-bank foreign exchange, days after intervening in the retail segment of the market with $254.3 million.

A breakdown of the Monday’s intervention indicates that the bank offered $100 million to dealers in the wholesale segment, while it allocated $23 million to the Small and Medium Enterprises (SMEs) segment. Those requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA) received $19.5 million.

Confirming the latest round of foreign exchange intervention, the spokesperson of the apex bank, Isaac Okorafor said the CBN would continue to carry out its regular mediation in the market so as to keep the market liquid and guarantee the international value of the Naira in line with its mandate.

While reiterating the CBN’s resolve to intervene in the market based on bids received from dealers on behalf of their respective customers, Okorafor said the bank would not relent in ensuring transparency and efficiency in the sale of foreign exchange.

According to him, this commitment prompted the bank to mandate dealers to make public their foreign exchange utilisation. He therefore urged all stakeholders to continually play their roles to guarantee transparency in the market.

Last Friday, the CBN intervened in the retail segment of the foreign exchange market to the tune of $254.3 million following bids received from foreign exchange dealers by the apex bank. The figure sold by the bank was for companies in the raw materials, agricultural, airline and petroleum industry.

Meanwhile, the Naira maintained its stand at the Bureau de Change (BDC) segment of the foreign exchange market, exchanging at an average of N364/$1 in Lagos, Abuja and Kano.

Source: News Express

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