Naira sinks further despite CBN’s intervention

By Odunewu Segun

The naira on Monday took a further plunge against the dollar at the parallel market, shedding two more points to trade at N395 to the dollar as against the N393 recorded on Friday, National Daily findings has revealed

This latest drop is coming on the heels of another $240 million injected into the market by the Central Bank of Nigeria on Monday, April 3.

A breakdown showed that CBN, on Monday injected $90 million to meet requests by bank customers, while additional $150 million was offered to authorize FOREX dealers in the interbank wholesale auction window in its bid to sustain the supply of foreign exchange and ensure liquidity in the market.

The spokesperson of the bank, Isaac Okorafor, who confirmed the figure, said the fresh release is to meet invisibles such as basic and personal transport allowances, medical bills and school fees.

ALSO SEE: CBN continues forex liquidity boost with additional $240m

The CBN spokesperson said the bank was optimistic that latest $150 million offered to authorised FOREX dealers in the interbank wholesale window would be enough to meet the requests of genuine wholesale customers.

It however, appears that the intervention by the apex bank to save the naira is not making the required effects, and seems to be a scratch on the surface as the naira continues its downward movement at the parallel market.

At the Bureau De Change (BDC) window, the naira was sold for N362 to the dollar, while the Pound Sterling and the Euro closed at N483 and N430, respectively. Trading at the interbank market saw the naira closed at N306.3 to the dollar.

Meanwhile, traders at the market expressed optimism that the naira would bounce back as the CBN continued to boost liquidity at the interbank market and the BDC sector in the week.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON) said that the apex bank had reduced the time lag between the funding of their accounts and the disbursement of foreign exchange.

Gwadabe said that with more liquidity at the BDC window and effective distribution of foreign exchange, the naira was well positioned to bounce back.