CBN injects $413.5m into forex market

The Central Bank of Nigeria (CBN) has intervened in the inter-bank foreign exchange market by boosting the market with $413.5 million.
This action of the apex money market regulator further underscores its 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, the CBN Acting Director of Corporate Communications, Mr. Isaac Okorafor, said 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, among others.
According to Okorafor, the Bank also yesterday released the figures for the auction sales in the retail window last week, totalling $260million.
The CBN spokesperson said the apex 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 interbank 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 forex market as it exchanged at an average of N362/$1 in the BDC segment of the market on Monday, June 12, 2017.