…As CBN lifts forex market with fresh liquidity
The Naira, on Monday settled low against the Pound sterling and Euro at N510 and 446, respectively , compared to N505 and N445 exchanged over the weekend at the unofficial forex market.
This is even as the Central Bank of Nigeria (CBN) yesterday injected fresh foreign exchange for Business and Personal Travel Allowances, tuition, medical fees and others can access from a 55 million dollars allocation injected into the segment of the econom.
Reports say that the amount is part of 210 million dollars pumped into various segments of the foreign exchange market by the apex bank.
However, the local currency, in the other hand seen flat at N364 to the dollar at the close of yesterday trading activities on the same forex segment.
At the Investors and Exporters (I&E) foreign exchange window, the naira, also closed at N360.37 against the Dollar as trading across the market started on a weaker note.
The special window for investors and Exporters opened at N360.00, traded high at N361.00 and eventually closed at N360.37, representing a 0.01 per cent depreciation against Friday’s closing price
The Naira at the inter-bank (official) closed at N305.70, representing a 0.02per cent dexlins qhile compared against Friday’s closing price of 305.65.
However, the breakdown of the amount, released by the CBN acting Director, Corporate Communications Department, Mr Isaac Okorafor in a statement in Abuja, showed that the bank offered 100 million dollars as wholesale interventions.
He said that the bank also allocated 55 million dollars through the Small and Medium Enterprises (SMEs) Forex window.
He reiterated that the bank would sustain its interventions in the foreign exchange market.
He also expressed optimism that the value of the naira would continue to spike in the face of accretion to the foreign reserves and the attendant reduction in the country’s import bill.
Okorafor urged all dealers to continue to play by the rule, as the CBN would not hesitate to sanction any erring bank or dealer.
Meanwhile, the naira continues to maintain its stable run against major currencies around the globe, exchanging for N362 to a dollar in the Bureau De Change segment of the market
Apart from yesterday intervention, the CBN, had recently injected $262.2 million on January 12, $210 million on January 15, $210 million on January 23 and with $304.4 million on January 26.
Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, explained that the CBN would continue to ensure liquidity in the interbank sector of the market as well as sustain its interventions in order to drive economic growth and guarantee market stability.
Meanwhile, Managing Director, Afrinvest Securities, Ayodeji Ebo, recently disclosed that the apex b through its weekly intervention had lifted the foreign exchange (forex) market with total sum of $15.9 billion in nine months.
He made this disclosure at the Finance Correspondents Association of Nigeria (FICAN) Economic Outlook with theme: ‘Nigeria Economy and Financial Market Outlook: 2017 Review and 2018 Outlook’ held at the FICAN Centre, Lagos.
Ebo said the intervention funds, were for nine months, which started April and ended December, last year. He also said the figure was an improvement compared to the $9.6 billion spent in during same period of 2016.
He also said the Investors’ & Exporters’ Forex Window has recorded over $27.8 billion in turnover and brought about transparency and stability in the market.
He added that current account stabilised in surplus position, expanding to $9.6bn annualised in nine months, from $2.7bn in fiscal year 2016.
He said the foreign investors will be happy to see the interest rate remain at 14 per cent, even as the stability in the market has helped the foreign investors know that the economy is stable. “Foreign portfolio investments provide liquidity and confidence to the market. And keeping the interest rate at 14 per cent will help keep them coming,” he said.