AS the exchange rate of Naira remained unchanged at N364.00/$ at the unofficial segment of the foreign exchange market the Central Bank of Nigeria (CBN) on Friday, April 5, made an intervention of $247.8 million in the retail Secondary Market Intervention Sales (SMIS) and CNY 34.8 million in the spot and short tenored forwards segment of the inter-bank foreign exchange market.
At the Interbank, the Naira/USD rate was unchanged at N307.00/$ (spot) and N355.78/$ (SMIS). The NAFEX closing rate in the I&E window was relatively unchanged at N360.33/$, whilst market turnover rose higher by 105 per cent to $244 million.
The CBN’s intervention was disclosed by the Director, Corporate Communications Department, Isaac Okorafor, who revealed that the intervention was for requests in the agricultural and raw materials sectors. The Chinese Yuan, on the other hand, was for Renminbi denominated Letters of Credit.
Mr Okorafor further expressed satisfaction over the continued stability of the foreign exchange which, according to him, was largely due to sustained intervention by the Bank.
He assured that the apex bank management would remain committed to ensuring that all the sectors of the forex market continue to enjoy access to the needed foreign exchange.
Meanwhile, $1 exchanged for N360 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY1 exchanged at N53.
In the near term, dealers expect the naira to remain stable at current bands as the pace of capital inflows remains sustained, largely supported by the abating political risks and the halt in rate hikes by systemically important central banks in advanced economies.
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