Inter-Bank Market: CBN Injects More Dollars
BY CHINYERE OBIORA, LAGOS – Strong indications emerged that the nation’s currency, the Naira will rebound further after the May 1 Workers’ Day celebrations with the Central Bank of Nigeria (CBN) resuming a fresh round of forex injections into the market’s invisibles segment.
Already, there is optimism among Forex dealers that the dollar would likely depreciate against the Naira given rate of forex liquidity the apex bank is pumping into the system and its obvious positive impact on the local currency.
CBN Acting Director of Corporate Communications, Isaac Okorafor, who confirmed moves to inject more foreign exchange into the inter-bank market, said the CBN Governor, Godwin Emefiele is committed to ensure those with genuine needs for foreign exchange readily gained access to the facility.
Okorafor said the CBN’s actions were in line with its mandate of safeguarding the Naira value, adding that the apex bank is resolute in achieving a convergence of the rates in the inter-bank and Bureau de Change segments of the market.
The CBN spokesman said it is imperative for all stakeholders to shun illicit activities and be circumspect delivering on their relevant roles to ensure the foreign exchange market runs smoothly in the overall interest of the Nigerian economy.
Interestingly, market watchers insist that the CBN’s latest policies, which cater specifically for SMEs, exporters and importers, would see the Naira firming up against other major currencies when trading commences this week.
In recent weeks, the apex bank has consistently escalated activities in the financial system, including issuing a forex policy statement setting up special windows for Small and Medium Enterprises (SMEs) to enable them import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.
Similarly, the CBN established an “Investors’ & Exporters’ FX Window” aimed at encouraging foreign investors in the country’s forex market.
