Stock market reacts positively to new FX window
This is yet another Forex window by the CBN, while Analysts believed it would positively impact the economy.
Analysts noted that this was a response to the new Forex window which was created by the Central bank for investors and exporters,named: ‘Investors’ & Exporters’ FX Window’. According to the CBN circular announcing this, the purpose of the window was to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.
Analystsfurther stated noted that the new window is positioned to increase investors’ confidence in the country’s forex market, improve price discovery, unfreeze dollar inflows from Foreign Portfolio Investors (PFIs), trigger increased liquidity of the inter-bank market and boost local manufacturing capacity of the country.
Data obtained by our Business Correspondent from the FMDQ websites showed that the new ‘Investors’ & Exporters’ FX Window’ closed at N377.11/1$ on Monday, April 24 after being quoted at an opening price of N372/1$.
Also,the Nigeria’s Central Bank has continued its foreign exchange market intervention by pumping an additional $246.2 million to authorised dealers on the interbank market for wholesale forwards, small and medium scale enterprises (SMEs) and invisibles.
The bank’s spokesman in a statement on Monday, April 24, Mr. Isaac Okorafor, confirmed the offer and sales, disclosing that the forwards sales would be concluded in the days to come. He, however, added that the CBN would continue its weekly sale to dealers in the Bureau de Change (BDC) segment this week in order to guarantee onward sale to end users.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: