Nigeria’s central bank intervenes in forex market with yet another $210m

The Central Bank of Nigeria (CBN) has made available the sum of $210 million to meet customers’ requests in various segments of the foreign exchange market.

In its quest to meet customers’ needs in the various segments of the market, the CBN offered $100 million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55 million.

According to figures obtained from the bank Wednesday, May 23, 2018, customers needing foreign exchange for Invisibles such as tuition fees, medical payments and basic travel allowance (BTA), among others, were also allocated the sum of $55 million.

It will be recalled that Godwin Emefiele, the CBN governor, during his post-MPC remarks on May 22, 2018, said that the country’s foreign reserve stood at $47.79 billion and that pressure on the foreign reserve would be reduced as a result of the recent currency swap between the CBN and the Peoples Bank of China.

Also, Isaac Okorafor, the acting director, corporate communications department reiterated the bank’s commitment to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability.

Okorafor said that the CBN would sustain its strategic management of forex, with a view to reducing the country’s import bills and halting the depletion of its foreign reserves.

The bank last Friday, May 18, 2018, intervened to the tune of $293 million to cater for requests in the retail segment of the forex market.

Meanwhile, the naira continued its stability in the FOREX market, exchanging at an average of N363/$1 in the BDC segment of the market on Wednesday, May 23, 2018.