Forex Intervention: CBN Deploys $210m
BY EDMOND ODOK, ABUJA – The Central Bank of Nigeria (CBN) injected 210 million US dollars into three segments of the market as part of its interventions in the inter-bank sector of the Foreign Exchange market.
A breakdown of the latest round of intervention released on on Tuesday, February 27, 2018, showed that the apex bank offered the sum of 100 million US dollars to dealers in the wholesale window, with players in the Small and Medium Enterprises (SMEs) window receiving an allocation of 55 million US dollars.
For the invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals among others, the CBN made available to dealers an allocation of 55 million US dollars.
According to Isaac Okorafor, CBN’s Acting Director, Corporate Communications, the Bank would continue to make the interventions, in spite of the fact that the country’s reserve has enjoyed accretion in the past weeks, bringing the figure to about 42 billion US dollars.
The apex bank spokesman is confidence that the current forex management strategy has continued to yield the desired result, adding that the CBN would continue to sustain its activities in the market as part of measures to maintain stability and liquidity in the country’s financial system.
Giving insights on the goal of convergence between the rates at the inter-bank and Bureau de Change (BDC) segments, Okorafor stated that the apex bank is determined and working hard to achieve the objective, even as he is upbeat that the rates in both markets would eventually merge in due course.
In the meantime, the Naira continued to maintain its stability in the Forex market as it exchanged at an average of N360/$1 in the BDC segment of the market as at Tuesday, February 27, 2018.
