CBN forex intervention again strengthens Naira

By Chris Ebong Nigerian Naira continued to sustain gain at the parallel markets and move closer inch to converge with...

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By Chris Ebong

Nigerian Naira continued to sustain gain at the parallel markets and move closer inch to converge with the Official market rate as the Central Bank of Nigeria (CBN) make steady interventions at the foreign exchange market.

The CBN has since February been pumping in dollars in all segments of the interbank market to ensure liquidity and availability of forex. More than $5 billion has been injected into the market.

The naira has gained substantial ground against the United States dollar, selling at N363/$1 compared to the previous rate of N378/$1, the apex bank said.

According to market sources, the CBN is determined to ensure a convergence between the interbank and Bureau de Change (BDC) rates soon, hence the move to continue its intervention in the interbank market.

The regulator had last Tuesday intervened in the inter-bank market to the tune of $482.6 million with the Retail SMIS allocated the sum of $285,779,350, while the $100 million was offered in the Wholesale SMIS auction window.

The Small and Medium Enterprises (SMEs) window got an allocation of $52 million, while the invisibles segment, comprising Basic Travel Allowance (BTA), Personal Travel Allowance, medicals and tuition fees, among others, was allocated the sum of $45 million.

Speaking at the weekend, CBN spokesman Isaac Okorafor said there were indeed plans by the CBN to make necessary interventions in the forex market, in line with its earlier resolve to achieve forex rates convergence and liquidity in the market.

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