Post Views: 529 The Central Bank of Nigeria (CBN), on Wednesday assured that it is not prepared to abandon one of its core functions of ensuring a sta...
The Central Bank of Nigeria (CBN), on Wednesday assured that it is not prepared to abandon one of its core functions of ensuring a stable exchange rate for the Naira.
The assurance is coming amidst apprehension amongst many analysts and observers over the sustained decline in Nigeria’s foreign reserves since attaining its peak on May 11, 2018.
Many are worried that the decline is coming at a time when the price of crude oil, the nation’s biggest revenue earner has remained well above the budget benchmark, just as the peace in the oil rich Niger Delta region has meant the country’s oil production remains robust.
A statement by the apex bank, on Wednesday quoted Isaac Okorafor, Director of Corporate Communication at the CBN as stressing the apex bank’s determination to achieve its objective of exchange rate stability, hence the continued injection in the foreign exchange market.
The statement followed the CBN’s intervention in the interbank foreign exchange market on Wednesday, November 21, 2018, when it injected a total of $210m.
Details of the intervention showed that the sum of $100m was injected into the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received $55m, while the invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, got another $55m.
According to Okorafor, who confirmed the fresh injection, expressed pleasure at the level of transparency in the market has remained a confidence booster for the market.
The CBN, he said, is satisfied with the state of the Nigerian Forex market, assuring of the willingness to continue intervening so as to sustain liquidity therein and guarantee the international value of the Naira.
It will be recalled that the CBN in its last intervention window on November 16, 2018, injected the sum of $318.03m and CNY 62.18m into the Retail Secondary Market Intervention Sales (SMIS).
Meanwhile, the Naira continued to maintain its stability in the FOREX market, exchanging at an average of N361/$1 in the Bureau De Change segment of the market on Wednesday.