CBN uplifts forex market with $308.5m

CENTRAL Bank of Nigeria (CBN) continued its sustained liquidity injection to the foreign exchange market, with another $308.5 million on Friday.

This move is expected to further ensure liquidity and stability in the FX market.

It will be recalled that the Bank opened the week with a boost of $195 million ahead of Monetary Policy Committee decisions.

A total sum of $195m was offered in three segments of the market.

In the wholesale Secondary Market Intervention Sales (SMIS), of the Inter-bank Foreign Exchange market, it auctioned $100m and also intervened in the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45million respectively. This brings the total intervention for the week to a sum of $503.5million.

The CBN Acting Director, Corporate Communications Department, Mr Isaac Okorafor who gave the figures in Abuja on Friday, September 29, 2017, announced that the latest intervention of the CBN in the retail segment was part of the regular interventions of the Apex Bank, in line with its commitment to sustain liquidity to meet genuine requests in the market.

While warning against speculations in the market, Mr Okorafor said the CBN had put necessary checks in place to guard against the activities of speculators. He stressed the determination of the Bank to continue its forex intervention. He encouraged genuine users of foreign exchange to approach their banks, as the banks had enough forex to meet their demand.