Forex: CBN Injects $210m into Inter-Bank Market
In continuation of its periodic intervention in the foreign exchange(forex) market, the Central Bank of Nigeria (CBN) on Tuesday, January 29, 2019, injected another sum of $210 million into the inter-bank foreign exchange market.
Figures released by the CBN on Tuesday indicated that authorised dealers in the wholesale segment of the market received the sum of $100million, while the Small and Medium Enterprises (SMEs) and the invisibles segments were allocated the sum of $55 million each.
The Director, Corporate Communications Department at the CBN, Mr. Isaac Okorafor, confirmed the figures and restated the Bank’s resolve to always meet the request of genuine customers in the various segments of the market.
It will be recalled that on Friday, January 25, 2019, the Bank injected a total sum of $289.76million into retail Secondary Market Intervention Sales (SMIS) and CNY38.70million in the spot and short-tenored forwards of the inter-bank foreign exchange market.
Meanwhile, the naira on Tuesday, January 29, 2019 continued to exchange at an average of N360/$1 in the Bureau De Change (BDC) segment of the market.
Economic Confidential recalls that the Central Bank of Nigeria (CBN) made its first intervention January 4 in the inter-bank sector of the Foreign Exchange (FOREX) market for 2019 with a sum of 210 million dollars.
The CBN Director, Corporate Communications, Isaac Okorafor, said the wholesale sector of the market received 100 million dollars, while the Small and Medium Enterprises (SMEs) received 55 million dollars. Okorafor said another 55 million dollars was allocated to customers requiring foreign exchange for business and personal travels, tuition or medical fees.
The CBN spokesman said the apex bank would continue from where it stopped in 2018 in order to maintain the stability being enjoyed in the market. He noted that the Bank had made commendable effort in keeping the exchange rates at the current levels.
Okorafor said the current capital flow reversals from the emerging markets were expected to bring out pressures on the market rates. He, however, assured that, in spite of the anticipated pressures, coupled with the forthcoming elections, the bank was committed to maintaining the current exchange rate policy, given the level of reserves.
“The CBN is determined to sustain a stable exchange rate as it continues to put in place relevant measures to shore up the country’s reserves,” Okorafor said.