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Isaac Okorafor CBN pumps $210 million into FX market to reduce pressure on Naira

The CBN says the intervention is to ensure stability and reduce pressure on the naira against other foreign currencies especially the dollar.

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The Central Bank of Nigeria, CBN, has pumped $210 million into the foreign exchange market to ensure stability and reduce pressure on the naira against other foreign currencies especially the dollar.

The CBN said the persistence interference at the FX market is in its efforts to maintain a stable exchange rate for the naira.

Isaac Okorafor, the CBN Acting Director in charge of the Corporate Communications Department, in a statement released on Wednesday, April 18, 2018, said the continued intervention by the bank was in line with its commitment to ensure liquidity in the market as well as reduce pressure on the naira.

Okorafor said that the CBN was pleased with the current market situation brought about by policies it had put in place to check forex speculators, round trippers and rent-seekers.

He noted that the policies had helped to stabilise the exchange rate in addition to the establishment of the Investors-Exporters window, which had increased FX supply with over $20bn inflow since its inception.

"The bank will not relent in its effort to manage the country’s forex with a view to reducing its import bills and checking any hemorrhage of its foreign reserves."

ALSO READ: Nigeria's inflation rate drops to lowest in 14 months

Breakdown of the figures

A breakdown of the figures indicated that the CBN offered the sum of $100m to authorised dealers in the wholesale segment of the market, just as it allocated the sum of $55m each to the Small and Medium-scale Enterprises segment and the invisible segment to meet needs for tuition and medical payments and Basic Travel Allowance, among others.

Nigerian naira rates against dollar

Meanwhile, the Nigerian naira appreciated at the Investors’ & Exporters’ FX window on Wednesday, by 0.07% to close at N359.89 against the dollar. The currency closed flat at the CBN official and parallel market sides at N305.60 and N363.

IMF hails CBN policies

The Central Bank intervention is coming just as the International Monetary Fund, IMF, attributed Nigeria's growth projection on the various monetary policies of the Apex bank.

The International Lender projected that Nigeria's economy will grow by 2.1% in 2018 up from the 0.8% in 2017, estimated 3.4% growth for sub-Saharan Africa.

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