CBN injects $210m into inter-bank market

Nike Popoola

In continuation of its periodic intervention in the foreign exchange market, the Central Bank of Nigeria, on Tuesday, injected another sum of $210m into the inter-bank foreign exchange market.

Figures released by the CBN indicated that authorised dealers in the wholesale segment of the market received $100m, while the Small and Medium Enterprises and the invisibles segments were allocated $55m each.

The Director, Corporate Communications Department, CBN, Mr Isaac Okorafor, restated the bank’s resolve to always meet the request of genuine customers in the various segments of the market.

Recall that on Friday the bank injected $289.76m into retail Secondary Market Intervention Sales and CNY38.70m into the spot and short-tenored forwards of the inter-bank foreign exchange market.

Meanwhile, the naira on Tuesday continued to exchange at an average of N360/$1 in the Bureau De Change segment of the market.

In the first half report of the CBN, the regulator stated that it sustained its intervention at the interbank and BDC segments, to engender stability in the foreign exchange market.

Records from the regulator showed that in the half year report of 2018, the CBN increased the frequency of foreign exchange cash sales to the BDCs from twice to thrice per week, and adjusted the selling rate, downward to N357/$.

To boost liquidity and facilitate trade and investment, the Bank on April 27, 2018, signed a three-year bilateral currency swap agreement with the Peoples Bank of China worth Chinese Yuan CNY15bn – equivalent to N720bn or $2.5bn.