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Bank vows to sustain foreign exchange supply

The tide moved against the dollars last week as Naira closed N394 to a dollar, a 10 percent depreciation of what was recorded earlier in the week.

CBN

According to a statement by the apex bank’s acting Director, Corporate Communications, Mr. Isaac Okafor, “the bank wants to disabuse the notion by market speculators that it wouldn’t be able to sustain its forex intervention”.

The bank also indicated its resolution to further weaken the dollar through increase in supply to both interbank market and bureau de change.

“This is in addition to the further increase in the sales of dollars to the Bureau de change operators from $8000 to $10,000 twice per week”, he said.

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Source: www.abokifx.com/analytics

According to the statement, “the CBN had received complaints from customers over frustrations in getting foreign exchange for invisible items like tuition fee, medicals, personal and basic travel allowances”. Warning was therefore issued to both commercial banks and currency dealers to desist from sabotaging efforts aimed at easing access to foreign exchange for both business and personal use.

It would be noted that Naira has been appreciating against the dollar since February, 2017 when CBN started its massive market interventions. The tide moved against the dollars last week as Naira closed N394 to a dollar, a 10 percent depreciation of what was recorded earlier in the week. The depreciation was attributed to the alleged hoarding and high speculation on the ability of the CBN to continue its interventions. Thus, showing the significance of this press release by Nigeria’s apex bank.

Analysts and currency dealers expect further fall in the parallel market as the CBN’s dollar supply to the BDC operators will be $20,000 per week, while possibility of naira devaluation was foreclosed as this statement shows CBN will not be giving up soon.

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