CBN boosts Inter-Bank Forex Market with $462m

In line with its commitment to sustain and deepen flexibility in the foreign exchange market to further enhance foreign exchange flow in the economy, the Central Bank of Nigeria (CBN) on Friday, July 28, 2017, intervened in the inter-bank Foreign Exchange Market with the total sum of $462,336,426.74.

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.