CBN injects fresh $210m as Dollar loses steam

The interbank segment of the market of the Nigerian Foreign Exchange Market, on Tuesday, January 16, received a boost from the Central Bank of Nigeria, CBN, to the tune of $210 million.

Apex bank spokesman, Mr. Isaac Okorafor, in a statement, explained that the intervention was part of efforts to sustain the flow of forex in the market.

He said from the $210 million released by the country’s chief lender, $100 million was given to the wholesale market, while $55 million allotted to the small businesses, and $55 million went to the invisibles, which cover school fees, travels, and medical bills.

The CBN started its regular intervention in the forex market nearly a year ago and this has kept the Naira relatively stable against the Dollar and the other major foreign currencies.

Meanwhile, the dollar index, which measures the greenback’s value against a basket of six major currencies, was down at 90.27 in early trade on Tuesday.

ALSO SEE: CBN sets 1,500 new saving accounts for banks in Abuja

The U.S. stocks jumped to records with the Dow Jones Industrial Average crossing 26,000 and S&P 500 Index surpassing 2,800, both for the first time, as Citigroup Inc. discussed possible significant investor payouts from the bank’s windfall stemming from a major tax cut.

The British pound sank 0.3 percent to $1.3756, the largest decrease in almost two weeks. The Japanese yen fell 0.2 percent to 110.78 per dollar, the first retreat in more than a week.

The yield on 10-year Treasuries declined two points to 2.53 percent, the lowest in more than a week. Germany’s 10-year yield decreased three basis points to 0.56 percent. Britain’s 10-year yield fell one basis point to 1.312 percent.