Forex: Authorized Dealers, Others Get $210m Boost

Authorized dealers in the wholesale segment of the inter-bank foreign exchange market received the sum of $100million from the Central Bank of Nigeria (CBN) on Tuesday, October 9, 2018 to meet the needs of customers.

The CBN also on Tuesday allocated the sum of $55million each to the Small and Medium Enterprises (SMEs) and the invisibles segments. The figure for the invisibles was meant for customers requiring it for tuition fees, medical payments and Basic Travel Allowance (BTA) amongst others.

The Director, Corporate Communications at the Bank, Isaac Okorafor, reiterated that the Bank’s continued intervention in the inter-bank sector was aimed mainly at ensuring adequate liquidity in the market, even as he noted that there was not much pressure on the naira.

Meanwhile, the naira maintained its steady rate against major currencies around the globe, exchanging for N361/$1 in the BDC segment of the market on Tuesday, October 9, 2018.

Forex Market analysts have said the apex bank’s intervention led to the current flattening of the rate at 362.5 to the dollar at the parallel market.

In a chat with Sheriffdeen Tella, senior economist at the Olabisi Onabanjo University, Ago-Iwoye, Ogun state, said the apex bank’s interventions were made possible by the increase in the price of oil at the international market.

Tella said that the crude oil production output of two million barrels per day also meant more money for the nation.

He, however, that the recent production cut by the Organisation of Petroleum Exporting Countries (OPEC) to 1.8 million barrels per day might affect the nation’s crude oil earnings.

He urged the CBN to continue to intervene at the official foreign exchange market sustain the appreciation of the naira across board.