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CBN stabilizes the Naira with N6.9 trillion in 10 months

The monthly and quarterly economic report of the Central Bank of Nigeria, CBN, has revealed that the apex bank injected $15.3 billion (About N6.9 trillion) into the economy between January 2022 and October 2022, to stabilize the value of the naira.
The new naira notes [Dailypost]
The new naira notes [Dailypost]

According to the CBN report, the sum of $4.86 billion was injected into the economy in the first quarter of 2022 (The bank spent $1.65 billion, $1.39 billion and $1.82 billion respectively for January, February and March), $4.81 billion was injected in the second quarter while $4.18 billion was injected into the economy in the third quarter.

In October, the apex bank further injected $1.46 billion into the economy for the same purpose.

The CBN’s effort at intervening in the foreign exchange market has been criticized by the International Monetary Fund - IMF as the body has previously advised the country to stop the practice.

The IMF made this disclosure in its 2022 Article IV Consultation concluding statement after an official staff visit to Nigeria last year. The body advised the CBN to stop interfering in the market so that the commercial banks can determine dollar buy-sale rates to boost foreign capital flows to the economy.

The CBN’s monthly and quarterly economic reports further revealed that when compared with the previous quarter’s level, the total forex sales to authorized dealers by the bank which stood at $4.86 billion, decreased by 5.8 percent.

Disaggregation shows that foreign exchange sales at interbank/invisibles and SMIS windows declined by 16.9 percent and 10.8 percent to $0.46 billion and $1.79 billion, respectively, relative to the levels in the preceding quarter.

“Similarly, SME interventions and sales at the Investors & Exporters window, decreased by 2.0 percent and 26.7 percent to $0.38 billion and $1.41 billion, compared with the amounts in the preceding quarter.” the apex bank noted.

Total foreign exchange sales to authorized dealers which stood at $1.46 billion in October 2022 witnessed an increase of 31.5% relative to $1.11bn in September 2022.

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