Nigerian Naira remains stable as the Central Bank injects $210 million into the forex market

Nigeria's Central Bank has injected the sum of $210 million into the inter-bank foreign exchange to boost liquidity.

Nigeria's Central Bank has injected the sum of $210 million into the inter-bank foreign exchange (forex) market as the local currency, Naira, remains stable at N358 to the dollar.

The move, CBN said it was meant to boost forex availability and also meet customers’ requests in various segments of the market.

Isaac Okorafor, the bank’s Acting Director, Corporate Communications Department (CCD), confirmed the figures and reassured the public that the bank will continue to intervene in the interbank foreign exchange market in line with its quest to sustain liquidity in the market and maintain stability.

He added that the steps taken so far by the bank in the management of forex had paid off, as reflected by the reduction in the country’s import bills and accretion to its foreign reserves.

ALSO READ: Naira exchanges at N49-N51 per yuan at first auction of Chinese currency in Nigeria

The breakdown of the disbursement

- The CBN offered $100 million to authorised dealers in the wholesale segment of the market

- The Small and Medium Enterprises (SMEs) segment received $55 million.

- Customers requiring foreign exchange for other demands, such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated $55 million.

Meanwhile, the naira exchange rate remained stable at N358 to a dollar at the parallel market on Wednesday, August 8, 2018.

At the Importers and Exporters' window, it is currently trading above N361 to a dollar and flat at the CBN official rate at N306 to the dollar.

The monetary authority has been supporting the local currency against the dollar by making it available at the foreign exchange markets to meet customers' requests and reduce pressure on the demand.

ALSO READ: Nigeria wants importers to trade in Chinese Yuan to strengthen the forex market

As part of measures, recently, the Central Bank also signed a bilateral currency swap agreement with the People’s Bank of China (PBoC) worth about $2.5 billion.

The currency swap deal is valued at about N720 billion is expected to reduce the demand for US dollar by Nigerian businessmen importing goods from China, and consequently strengthening the value of the Naira.

Also from Business Insider Sub-Sahara Africa: