FX: CBN injects fresh $210million as money market rates spike

The Central Bank of Nigeria, CBN, has again released another tranche of $210million, to meet customers’ requests in various segments of the inter-bank foreign exchange, forex market.
In its quest to meet demands in the various segments of the market, the apex bank offered $100million to authorized dealers in the wholesale segment of the market.
The Small and Medium Enterprises, SMEs segment also got a boost with the sum of $55 million.
According to figures obtained from the Bank on Tuesday, customers requesting 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 the CBN last Thursday, June 20, pumped the sum of $210 million in its continued drive to cater for requests in the wholesale segment of the forex market.
Meanwhile, the money market rates appreciated by 0.20 percent on Tuesday, with system liquidity (estimated at N200 billion positive) skewed towards a fewer number of banks.
Specifically, the Open Buy Back, OBB rate leaped to 31.57 percent from 11.33 percent in the previous session, while the Overnight, OVN rate increased to 38 percent from 12.83 percent.
The rates were expected to be relatively flat on Wednesday, June 27, but to trend slightly lower in subsequent sessions due to expected inflows from FAAC and OMO maturities on Thursday and Friday.