Central Bank of Nigeria (CBN) will inject more US dollars into the foreign exchange market this week in a bid to further shore up the value of the naira, sources at the apex bank disclosed at the weekend. The naira had made a strong showing in the forex market last week, gaining substantial ground against the dollar, selling at N363/$1 compared to the previous rate of N378/$1.
The sources disclosed that CBN is not resting on its oars but is determined 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.
CBN on 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.
Speaking with newsmen at the weekend, CBN Acting Director, Corporate Communications, Isaac Okorafor, said 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.
Observers, while commending the bold move of the CBN, urged the Bank to remain committed to its goal for the benefit of the Nigerian economy.