Inter-Bank Forex Market gets $462m CBN boost

CENTRAL Bank of Nigeria
CBN last weekend intervened
in the inter-bank Foreign
Exchange Market with the
total sum of $462,336,426.74
in line with its commitment to
sustain and deepen flexibility
in the foreign exchange market
to further enhance foreign
exchange flow in the economy.
A breakdown of the forex
intervention figures obtained
from the Bank indicates
that the Retail Secondary
Market Intervention Sales
(SMIS) received the largest
allocation of $267,336,426.74.
The CBN also offered the sum
of $100,000,000 as wholesale
interventions, while the sum of
$50,000,000 was allocated to the
Small and Medium Enterprises
(SMEs) forex window. Those
requiring foreign exchange
for Business/Personal Travel
Allowances, tuition and
medical fees, among others, got
a total allocation of $45,000,000.
Confirming the figures,
the Acting Director of the
Corporate Communications
Department, Mr. Isaac
Okorafor, said the leadership
of the CBN was impressed
by the positive impact its
current foreign exchange
management was having on
the manufacturing sector,
agriculture and economic
activities in general across the
country.
While reiterating that the
CBN management was also
encouraged by growth in the
non-oil sector, particularly
agriculture, he noted that the
apex Bank would not relent
in its efforts at sustaining
stability in the inter-bank Forex
market as well as ensuring
the convergence between
the exchange rates at the
Nigeria Autonomous Foreign
Exchange (NAFEX) and the
Bureau de Change segments of
the market.
According to him, the CBN
will continue to ensure proper
surveillance of the forex market
to guard against any sharp
practices by participants and
uphold transparency of the
process.
Re-echoing the optimism of
the CBN Governor, Godwin
Emefiele, at the last Monetary
Policy briefing on Tuesday,
July 25, 2017, Mr. Okorafor
expressed hope that the Bank’s
intervention, coupled with
complementary fiscal efforts,
would restore the economy to
the path of growth.
Meanwhile, the naira
maintained its steady rate
against major currencies
around the globe, appreciating
to N360/$1 in the BDC segment
of the market on Friday, July 28,
2017.