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CBN boosts production, trade with $288m retail SMIS

CBN boosts production, trade with $288m retail SMIS

The Central Bank of Nigeria (CBN) on Friday, enhanced trading and production activities by injecting the sum of $287.89 million into the Retail Secondary Market Intervention Sales (SMIS) in continuation of its resolve to guarantee liquidity in the foreign exchange market.

The breakdown of the intervention from the CBN on Friday revealed that the figure was in favour of the agricultural, airlines, petroleum products and raw materials and machinery sectors.

Isaac Okorafor, the Bank’s acting director, corporate communications department,  confirmed the figures, noting that the releases were targeted at sustaining liquidity in the market as well as boosting production and trade.

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Okorafor reiterated that the bank remained committed to ensuring liquidity in the inter-bank sector of the market and would continue to intervene to drive growth in the economy and guarantee stability in the market.

With Friday’s rates hovering around N359 and N360/$1, Okorafor was upbeat that the CBN’s forex intervention had effectively checked speculations around the naira. He, however, disclosed that the bank would continue to ensure enforcement through utilisation report and market intelligence.

It will be recalled that the CBN on Monday, November 20, 2017, intervened in the inter-bank Foreign Exchange Market to the tune of $210 million, comprising of $100million for the wholesale segment and $55 million each for the Small and Medium Enterprises (SMEs) and invisible segment.

The naira maintained its steady rate against major currencies around the globe, exchanging for N360/$1 in the BDC segment of the market on Friday.

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Last week, the Naira/USD exchange rate steadied week-on-week at the interbank market (NIFEX) while the Naira appreciated at the Investor and Exporters (I&E) foreign exchange window by N0.04 to N360.27/USD as on Thursday.

“We retain our stable outlook for the exchange rate amid sustained stability in global crude oil prices which should result in the further build-up in foreign reserves as well as CBN’s continued intervention in the various segments of the interbank foreign exchange market”, analysts at Cowry Asset Management limited said.