• As Rates Converge
Isaac Okorafor, Acting Director of Corporate Communications at the Central Bank of Nigeria, at the weekend assured of plans by the apex bank to continue necessary interventions in the nation’s foreign exchange market, in line with its earlier resolve to achieve rates convergence and liquidity in the market.
On how the bank hopes to sustain its interventions, Okorafor said the CBN had enough forex to meet the requirements of all customers with genuine needs for the U.S. Dollar. He also expressed optimism that the current policy of the CBN management relying on the cooperation of all stakeholders would check the unwholesome activities of speculators.
Okoroafor was reacting to hints about plans by the CBN to inject more funds into the market this week, in spite of the Naira’s strong showing in the foreign exchange market last week. This saw the currency gain substantial ground against the U.S Dollar, selling at N363/$1 compared to the previous rate of N378/$1.
According to one source, the CBN remains 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.
It will be recalled that the CBN on Tuesday, May 30, 2017, 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 $100m was offered in the Wholesale SMIS auction window. The Small and Medium Enterprises (SMEs) window got an allocation of $52m, while the invisibles segment, comprising Basic Travel Allowance (BTA), Personal Travel Allowance, medicals and tuition fees, among others, was allocated the sum of $45m. Meanwhile, indications at the weekend suggested that the rates between the interbank and BDC may soon converge, with the difference now down to a few naira.
Observers, while commending the bold move of the CBN, urged the bank to remain committed to its goal for the benefit of the Nigerian economy.
