CBN injects another $186.5 million into forex market

The Central Bank of Nigeria (CBN) yesterday injected another $186.5 million into the foreign exchange (forex) market, primarily targeted at the invisible and the Wholesale Secondary Market Intervention Sales (SMIS) segments.

The development came on the heels of a “hold” decision on all rates by the Monetary Policy Committee, where the apex bank’s Governor, Godwin Emefiele, declared that the bank was ready to achieve exchange rate convergence, which will see to the end of the spread between the black market and official foreign exchange rates.

“We would prefer a convergence that would go southward rather than northward, but the fact that we have seen the convergence moving southward gives us a lot of hope that things are working in the right direction,” he added.

However, the parallel market remained steady at N381 per dollar, just as traders said the market was waiting to digest the implications of the just released growth data and CBN’s rate decision.