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Finance Naira firms as CBN supports inter-bank forex market with $210 million

The naira closed firm on Tuesday, May 8, 2018, at N305.75 against the dollar at the official market and N362 per dollar at the Bureaux De Change (BDC) segment of the market, the rate it has held since May 1, 2018.

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The Nigerian naira traded firm against the dollar on Tuesday as the Central Bank of Nigeria (CBN) boosted the inter-bank foreign exchange market with the sum of $210 million.

The CBN, in its quest to ensure the availability of foreign exchange in the financial system and reduce pressure on the naira, has been intervening in the various markets since 2017.

According to data from the central bank, the sum of $100 million was offered to authorised dealers in the wholesale segment of the market; the Small and Medium Scale Enterprises (SMEs) segment received the sum of $55 million while the sum of $55 million was apportioned to invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA).

Isaac Okorafor, the bank’s Acting Director, Corporate Communications Department, who confirmed the figures, reiterated CBN’s capacity to continue sustaining the foreign exchange intervention.

Okorafor urged authorised dealers to help sustain the confidence in the foreign exchange market by continuing to honour requests from customers with genuine needs.

Also READ: Central Bank of Nigeria is ready to fire some Bank CEOs, Chairmen over delayed annual reports

This intervention came a week after the CBN intervened in the Secondary Market Intervention Sales (SMIS) to the tune of $349.34 million.

Meanwhile, the naira closed firm on Tuesday, May 8, 2018, at N305.75 against the dollar at the official market and N362 per dollar at the Bureaux De Change (BDC) segment of the market, the rate it has held since May 1, 2018.

At the Investors and Exporters’ (I&E) window, the currency closed at N360.64 down by 0.07% for the day's trading.

Also READ: Nigerian businessmen dealing with Chinese won’t need Dollars as CBN signs $2.5billion swap deal with China

As part of its efforts to tame pressure on the local currency, the apex bank signed a bilateral currency swap with the People’s Bank of China (PBoC) valued at 16 billion Renminbi (RMB) which is an equivalent of $2.5billion.

The deal is expected to reduce the difficulties acquiring third currencies - Dollars, Euros and British Pounds.