Naira appreciates as CBN sustains intervention

The naira last week appreciated in parallel exchange market as well as the Investors and Exporters (I&E) window, while the Central Bank of Nigeria (CBN) sustained its intervention in the foreign exchange market with injection of $195 million.

National Daily survey revealed that the naira appreciated by N2 in the parallel market as the market exchange rate dropped to N363.5 per dollar on Friday from N363.5 per dollar the previous week. The appreciation was driven by decline in demand pressure due to increase dollar supply into the economy.

At the I&E segment, the naira appreciated by N1.07 as the indicative exchange rate dropped to N359.56 per dollar on Friday from N360.64 per dollar the previous week.

On Monday the CBN continued its intervention by injecting $195 million into various segments of the interbank foreign exchange market.

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Confirming the injection, Acting Director, Corporate Communications Department at the Bank, Mr. Isaac Okorafor said that the apex bank offered the $100 million to the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received    $50 million. The invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, received $45 million.

Okorafor reiterated the apex Bank’s determination to sustain the provision of foreign exchange with a view to ensuring liquidity in the market and enhance accessibility and affordability for genuine end users.

He said that    the apex bank remained determined to achieve its objective of rates convergence, hence the unrelenting injection of intervention funds into the foreign exchange market.