Economy

Again, CBN Lifts Inter-Bank Forex Market With $462m

The Central Bank of Nigeria (CBN), again, on Friday, renewed its resolve to continue intervening in the inter-bank foreign exchange market, a move that has continued to inspire confidence, especially among foreign portfolio investors in the nation’s economy.
As part of deepening flexibility in the foreign exchange market to further enhance foreign exchange flow in the economy, the apex bank, on Friday, July 28, 2017, injected a total sum of $462,336,426.74.
A breakdown of which showed that the Retail Secondary Market Intervention Sales (SMIS) received the largest allocation of $267,336,426.74, even as the sum of $100m was offered as wholesale interventions, while $50m went to the Small and Medium Enterprises (SMEs) forex window.
Those requiring foreign exchange for Business/Personal Travel Allowances, tuition and medical fees, among others, got a total allocation of $45m.
Confirming the figures, the Acting Director of the Corporate Communications Department, Isaac Okorafor, said the leadership of the CBN was impressed by the positive impact its current foreign exchange management was having on the manufacturing sector, agriculture and economic activities in general across the country.
While reiterating that the CBN management was also encouraged by growth in the non-oil sector, particularly agriculture, he noted that the apex Bank would not relent in its efforts at sustaining stability in the inter-bank Forex market as well as ensuring the convergence between the exchange rates at the Nigeria Autonomous Foreign Exchange (NAFEX) and the Bureau de Change segments of the market.
According to him, the CBN will continue to ensure proper surveillance of the forex market to guard against any sharp practices by participants and uphold transparency of the process.
Re-echoing the optimism of the CBN Governor, Godwin Emefiele, at the last Monetary Policy briefing on Tuesday, July 25, 2017, Mr. Okorafor expressed hope that the Bank’s intervention, coupled with complementary fiscal efforts, would restore the economy to the path of growth.
Meanwhile, the naira maintained its steady rate against major currencies around the globe, appreciating to N360/$1 in the BDC segment of the market on Friday, July 28, 2017.

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