CBN enhances Inter-Bank liquidity with $210m

HOPE MOSES-ASHIKE

In another round of intervention, the Central Bank of Nigeria (CBN) on Tuesday, May 15, 2018, injected the sum of $210million into the inter-bank Foreign Exchange Market to boost liquidity in the system.

The breakdown of the forex allocation indicates that the CBN allocated the sum of $100million to dealers in the wholesale sector, just as the Small and Medium Enterprises (SMEs) segment and invisibles each received the sum of $55 million.

However, the naira traded at a weakening level on Tuesday, as it lost marginally by 0.01 percent to close at N361.61k per dollar, as against N361.57k traded the previous day, at the investors and exporters forex window, data from FMDQ shows.

Furthermore, at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX),the naira depreciated marginally by N0.02k to close at N361.20k per dollar on Tuesday from N361.18k the previous day.

Validating the releases, the Acting Director of Corporate Communications Department (CCD) at the Bank, Isaac Okorafor, said that the continued interventions in the interbank foreign exchange market was mainly to ensure sustained liquidity and stability in the market.

According to him, the interventions by the CBN had impacted the market positively and guaranteed a stable exchange rate for the Naira, which has since stabilised the foreign exchange market.

He reiterated that the bank’s intervention moves had also seen to a reduction in the country’s import bills and accretion to its foreign reserves.

Meanwhile, the naira exchanged at N362/$1 in the BDC segment of the market on Tuesday, May 15, 2018.