CBN Sustains Forex Intervention, Injects Fresh $418m
BY COBHAM NSA, ABUJA – The Central Bank of Nigeria (CBN) will not compromise its resolve for continuous intervention in the foreign exchange market to boost the Naira and advance sustainable economic growth.
In a move to match words with action, the apex bank, over the weekend, auctioned the sum of US$418 million at the retail-SMIS at a marginal rate of N310/$ with the airlines, agriculture, petroleum and raw materials/machinery sub sectors as major beneficiaries from the public sale.
CBN’s Acting Director, Corporate Communications, Isaac Okorafor said the development “was in addition to the sum of US$350 million sold as wholesale auction, BTA/PTA, and school fees during the week.”
Maintaining that the sustained foreign exchange market injection is meant to reassure all users of CBN’s resolve to meet all genuine forex demand and ensure exchange rate stability in the financial market, Okorafor explained that in the coming weeks, “the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market i.e. PTA/BTA, Wholesale SMIS, Retail SMIS and the BDC.”
According to image maker, the CBN will also “sell short tenured forwards of (seven) 7-30-day maturity to meet demand of manufacturers and all other foreign exchange users.”
“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate FX demand in the market while striving to achieve exchange rate stability in the market,” Okorafor said.
