Indications emerged at the weekend that encouraged by the positive response of the Naira to its earlier $180 million intervention to save the nation’s currency, the Central Bank of Nigeria (CBN) is set to inject another $350 million to enable Deposit Money Banks meet yearning customer demands for the green back.
The planned fresh injection, which would bring total disbursed to $570m in just one week is expected to further crash the value of the Dollar, a situation that has engendered panic among currency traders.
A breakdown of the $180m supplied by the CBN has in the last one week $80m was for PTA, Medical fees and school fees, while $100m is in wholesale forwards.
Acting Director, Corporate communications, Isaac Okorafor, explained that with the nation’s improving reserve levels, the CBN is determined to continuously make forex available to all genuine customers through their banks. He advised those hoarding the US$ to reduce their losses by selling their dollar stock.
Market watchers, say there is the likelihood of a liquidity glut as banks are beginning to send out salespeople to scout for customers to buy off their dollars in an effort to avoid losses arising from the expected further appreciation of the naira.
According to the latest data available on the CBN website on Thursday, March 2, 2017, the nation’s foreign exchange reserves stood at $29.737bn, representing an increase of about $3.893bn or 15.06% year-to-date from $25.843bn at the end of last year.
