Panic sale, as CBN set to pump in additional $350m

Forex traders have been set on panic button, as news filtered in that the Central Bank of Nigeria (CBN) will this weekend, further pump more dollars into the foreign exchange market in continuation of its strategy to strengthen the value of the Naira.

According a source in the apex the Bank, there is a planned release of an additional $350m bringing the total to $570m in this week alone to further crash the value of the Dollar.

Already, there are heightened fears among traders and other market participants, who are yet to recover from the losses of the last two weeks owing to sharp and sudden appreciation of the Naira.

Acting Director, Corporate communications, Isaac Okorafor, who confirmed this development, reiterated that with improving reserve levels, the Bank was determined to continuously make forex available to all genuine customers through their banks, advising those hoarding the greenback to reduce their losses by selling their dollar stock.

Market watchers, say there is the likelihood of a liquidity glut, as banks are beginning to send out salespeople to scout for customers to buy off their dollars in an effort to avoid losses arising from the expected further appreciation of the naira.

The CBN has in the last one week supplied a total of $570m to the market made up of $80m for PTA, Medical fees and school fees, $100m in wholesale forwards, while another $350m is planned for injection this weekend.