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The local currency on Monday strengthened against the other foreign currency after the Central Bank of Nigeria (CBN) injected a total sum of $195 million into the inter-bank forex market on same day to meet the requests of customers in the various segments of the market.
This follows the CBN’s intervention in the inter-bank foreign exchange market, last week, to the tune of over $800 million.
Consequently, naira gained N0.91k at the investors and exporters to close at N366.20k per dollar on Monday from N365.29k per dollar traded on Friday last week according to data from FMDQ.
The nation’s currency maintained gains at the black market as it closed at the rate of N367 per dollar, while it weakened marginally by N0.05k, closing at N305.80k per dollar at the inter-bank spot foreign exchange market, data from FMDQ revealed.
A breakdown of the intervention revealed that the Bank offered the sum of $100 million to authorized dealers interbank wholesale window, while it allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) window. The invisibles segment was allocated the sum of $45 million to meet the needs of those who applied for Forex to settle Business/Personal Travel Allowances, school tuition, and medicals, etc.
Confirming the figures in the latest round of intervention by the Bank, its acting director in charge of Corporate Communications, Isaac Okorafor, also announced a retail option submitted on Monday, adding that the results would be released subsequently.
The CBN spokesperson said the Bank would continue to ensure adherence to its forex policy by insisting on transparency of all stakeholders to guarantee stability in the market.
It will be recalled that the CBN made two major interventions in the inter-bank Forex market, last week, totaling $831.5 million, just as figures released by the Apex Bank indicated that it had boosted transactions at the Investors’ & Exporters’ (I&E) segment of the market to the tune of $2.2 billion.
Also last week, the CBN, in a bid to tackle inflation, unveiled plans to mop up a total of N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 per cent per annum.
Meanwhile, the naira continued to maintain its stability in the forex market, exchanging at an average of N364/$1 in the BDC segment of the market on Monday, June 19, 2017.
HOPE MOSES-ASHIKE
