The Central Bank of Nigeria has injected another $308.5 million into the foreign exchange retail segment market to further ensure liquidity and stability in the forex market.
Recall that CBN had opened the week with a boost of $195 million. Warning against speculations in the market, CBN Acting Director, Corporate Communications Department, Isaac Okorafor, said the CBN had put in place necessary checks to guard against the activities of speculators.
He urged genuine users of foreign exchange to approach their banks, as the banks had enough forex to meet their demand.
While the naira went for N360 to the dollar on the Bureau De Change segment, it closed at N364 to the dollar on the parallel market yesterday.
The CBN Governor, Godwin Emefiele had at Tuesday’s Monetary Policy Meeting, MPC, noted the continuing improvement in Nigeria’s external reserves position and the equities segment of the capital market, adding that the foreign reserves position grew to US$32.9 billion at the close of business on September 25, while the All-Share Index, ASI rose by 7.20 per cent from 33,117.48 on June 30 to 35,504.62 on August 31.
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“Total foreign exchange inflows through the Central Bank of Nigeria, CBN rose by 1.98 per cent in August 2017, compared with the previous month. Similarly, total outflow increased by 7.03 per cent during the same period as a result of increased international remittances, inclusive of public sector and JVC payments, which rose by 58.59 per cent in the period under review,” Emefiele had said.
The MPC, observed the trend towards convergence between the rates at the bureau-de-change (BDC) segment of the FX market and the Nigeria Autonomous Foreign Exchange, NAFEX segment, as well as the stability of the exchange rate at the inter-bank segment of the FX market during the review period.
“Similarly, the committee noted the success of the Investors’ and Exporters’ window, I &E of the foreign exchange market and traced this not only to foreign investor confidence but also to the zeal and commitment of Nigerian exporters who have demonstrated preference for the window to the parallel market.
“The committee observed that the I&E window has increased liquidity and boosted confidence in the market with over US$7 billion inflow in the last five months.