CBN injects $210m into forex market, as Naira slightly misses convergence

The Central Bank of Nigeria (CBN) yesterday sold $210 million at the inter-bank Foreign Exchange Market to meet customers’ requests from various segments of the economy, an indication of the effects of resurging reserves and supply.

Consequently, the Naira, in the renewed efforts for rates’ convergence for the first time recorded 27 cents away from the nearest point of N361 to the dollar.

The intervention is coming after the CBN ended last week’s activities with the injection of $262.5 million into the market, which covers demands across sectors, making it a total of $472.5 million in two trading days.

About $167.2 million was exchanged at the Investors’ and Exporters’ Window, closing at N360.33 per dollar, while at the Bureau de Change segment, it remained N360 per dollar and the road side currency hawkers were forced down to N361 per dollar.

However, the official exchange rate remained stable, opening at N305.30/N305.80 and closed at N305.80/N306.30, with a high of N305.80/N306.30 and a low of N305.30/N305.80 to the dollar.

Figures obtained from the CBN for yesterday’s transactions showed that the apex bank offered $100 million to authorised dealers in the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received $55 million.

Also, customers requiring foreign exchange for tuition, medical payments and Basic Travel Allowance (BTA), among others, were allocated $55 million.

CBN’s Acting Director, Corporate Communications Department (CCD), Isaac Okorafor confirmed the figures, adding that those who made bids in the wholesale window would receive value for the bids today.

He reassured that CBN would not relent in its resolve to make the inter-bank forex market liquid; stressing that the bank was committed to driving economic growth and guaranteeing stability in the market.

Okorafor also reiterated that the bank’s intervention had effectively checked the activities of speculators, assuring that the bank would continue to monitor thoroughly, the activities of authorised dealers in order to checkmate possible sharp practices.