CBN Boosts Naira, Inject $250mln into FX Market

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Image: Business Day

The Nigerian Naira gains momentum as the sum of $250 million was injected into various segments of the interbank foreign exchange market on Tuesday by the Central Bank of Nigeria CBN.

Although the naira remained constant in the parallel market, it depreciated by 72 kobo in the I&E window, as the indicative exchange rate rose to N360.39 per dollar from N359.67 per dollar last week Thursday.

Confirming the CBN intervention, Acting Director, Corporate Communication Department, CBN, Mr. Isaac Okorafor, said: “The Retail Secondary Market Intervention Sales (SMIS) segment of the market received the highest intervention with a total of $100 million, Small and Medium Enterprises (SMEs) window received a boost of $80 million while the invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals, etc. was allocated the sum of $70 million to meet the demands of customers”

Noted with delight the recent Quarter 2, 2017 Report by the National Bureau of Statistics (NBS) which indicated that Nigeria has gotten out of recession and hinged part of this success to the regular intervention of the Bank in the forex market, to boost liquidity in the market, ensuring timely execution and settlement for eligible transactions and also make forex available to the real sector and industrial capacities, critical to the Nigerian economy.

He also reminded the public of the Governor’s prediction a few months ago that the Nigerian economy will be out of recession at the end of the third quarter, 2017, which is largely due to the monetary policy stance of the CBN.

This, he said has been confirmed by the NBS report.”