CBN Boosts Currency Market with $210Million

CBN governor, Godwin Emefiele

Ronke Kehinde/

Some $210million have just been injected into the inter-bank foreign exchange market, says the Central Bank of Nigeria (CBN).

According to CBN, the move would extend efforts to boost liquidity and alleviate dollar shortages.

The bank says in a statement that it has released $100million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.

According to figures obtained from the Bank, Tuesday’s interventions were for the Wholesale, Small and Medium Enterprises (SMEs) and invisible segments of the market.

The Acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor disclosed that the Bank offered the sum of $100million to the wholesale segment, while the SMEs and invisible segments each received the sum of $55million.

He reiterated that the releases were meant to boost liquidity, trade and ease of remittances for legitimate personal commitments.

In spite of the stable rate of N360/$1, and the expected inflow from various sources such as the Eurobond and remittances from the Diaspora, Okorafor said that the Bank would continue to intervene in the inter-bank forex market to guarantee liquidity.

While also noting that the interventions had largely checked unwholesome activities of currency speculators, he said that the CBN would not relent in its daily monitoring of activities in the market in order to ensure that all concerned operate in line with extant rules.

Meanwhile, the Naira has maintained its steady rate against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Tuesday, December 12, 2017.