CBN injects fresh $297m into forex market

As Nigerians go into the long weekend of Muslim festival, Central Bank of Nigeria (CBN) gave the national currency a shot in the arm, pumping $297m into the retail Secondary Market Intervention Sales (SMIS) segment of the foreign exchange market on Thursday, last working day of the week.

This raised the total intervention for the week to the sum of $547m.

Confirming the figures, the CBN spokesman, Mr. Isaac Okorafor, the Acting Director, Corporate Communications Department disclosed that the Bank was resolute in its determination to intervene in the forex market with the aim of uplifting the naira exchange rate, boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

The spokesman also expressed confidence that the interventions will continue to guarantee stability in the market and ensure availability to individuals and business concerns with genuine demand for Forex transactions.

It will be recalled that the apex bank had on Monday intervened in the Inter-Bank Foreign Exchange Market to the tune of $195m in three segments.

In the wholesale segment of the inter-bank Foreign Exchange market, it sold $100m and also uplifted the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45million respectively.

Mr. Okorafor, while responding to media enquiries earlier in the week had hinted that the apex Bank would increase liquidity in the market in the coming days, noting that the move by the CBN is necessary to enhance stability in the FX market.