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CBN Injects $210m Into Forex Market - LEADERSHIP

JUNE 13, 2018

By Abuja, BUKOLA IDOWU, Lagos And MARK ITSIBOR

The Central Bank of Nigeria (CBN) yesterday supplied the sum of $210 million into the foreign exchange market to meet customers’ requests in various segments of the market.

The apex bank in its desire to meet customers’ needs in the various segments, offered $100 million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55 million.

Figures obtained from the CBN  yesterday showed that customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million. It will be recalled that last week, CBN approved an upward review of the trading margin available to operators of Bureau De Change (BDC) in the country, allowing BDC operators could buy the United States dollar from the CBN at the rate of N357/$1 and sell at N360, thereby leaving them with a positive margin of N3.00 per dollar sold.

The increased flow of Forex as well as the wider margin had positively impacted the value of the naira at the parallel market as the currency gained strength selling at N360 to the dollar. At the BDC market, the naira traded at N361 to the dollar.

With an inflow of $269.44 million at the Investors and Exporters Window, the value of the naira rose to N353 before closing the day’s trading at N361.30 to the dollar. Meanwhile, the CBN acting director, Corporate Communications Department (CCD), Mr. Isaac Okorafor, reiterated the apex bank’s commitment to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability. Okorafor reiterated that the CBN would sustain its strategic management of forex, with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

The bank last Monday, June 4, 2018, intervened to the tune of $210 million to cater for requests in the wholesale segment of the market.

Read More at: https://leadership.ng/2018/06/13/cbn-injects-210m-into-forex-market-2/

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