CBN Plans Injection Of Fresh Funds Into The Market

Yemisi Izuora

The Central Bank of Nigeria (CBN), is likely going to inject more funds into the foreign exchange market this week.

Sources said the CBN is committed to ensure a convergence between the interbank and Bureau de Change (BDC) rates soon, hence the move to continue its intervention in the interbank market.

It will be recalled that the CBN last Tuesday, May 30, 2017, intervened in the inter-bank market to the tune of $482.6 million with the Retail SMIS allocated the sum of $285,779,350, while the $100 million was offered in the Wholesale SMIS auction window.

The Small and Medium Enterprises (SMEs) window got an allocation of $52 million, while the invisibles segment, comprising Basic Travel Allowance (BTA), Personal Travel Allowance, medicals and tuition fees, among others, was allocated the sum of $45 million.

The CBN Acting Director, Corporate Communications, Isaac Okorafor, confirmed there were indeed plans by the CBN to make necessary interventions in the forex market, in line with its earlier resolve to achieve forex rates convergence and liquidity in the market.

On how the Bank hoped to sustain its interventions, Okorafor said the CBN had enough forex to meet the requirements of all customers, who had genuine need for the dollar. He also expressed optimism that the current policy of the Bank and the cooperation of all stakeholders would check the unwholesome activities of speculators.

Meanwhile, indications at the weekend suggested that the rates between the interbank and BDC may soon converge, with the difference now down to a few naira.

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