Nigeria’s central bank boosts foreign exchange market with $335.43m

The Central Bank of Nigeria (CBN) Friday boosted into the Retail Secondary Market Intervention Sales (SMIS) with the sum of $335.43 million to guarantee liquidity in the market.

Figures obtained from the CBN revealed that the intervention was to meet requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors.

Isaac Okorafor the bank’s acting director, corporate communications department,  confirmed the development reiterating that the CBN’s interventions in the market were aimed at sustaining liquidity in the market as well as boosting production and trade.

He explained that with increasing accretion to the country’s reserve, the bank is in a much better position to ensure liquidity in the inter-bank sector of the market and as such would continue to intervene in order to drive growth in the economy and guarantee stability in the market, particularly now that the economy had gained steam due to an upsurge in the non-oil sector.

With the naira closing at N360/$1 yesterday, Okorafor expressed confidence that the bank’s forex intervention underscored its determination to maintain the country’s external reserves in order to safeguard the international value of the naira.

The CBN had in its last SMIS on February 2018, injected the sum of $321.4 million in the interbank market, while also intervening in the inter-bank foreign exchange market to the tune of $210,000,000, comprising of $100million for the wholesale segment and $55 million for both the Small and Medium Enterprises (SMEs) and invisibles segment.