This
is coming on the heels of a cumulative $2.2 billion boost in the transactions
at the Investors’ and Exporters’ (I&E) segment of the market. Figures
obtained from the CBN show that the retail segment of the market received the
highest intervention with a total of $226 million, followed by the wholesale
window that received an allocation of $100 million.
The
Small and Medium Enterprises (SMEs) window received a boost of $50 million
while the invisibles segment, comprising business/personal travel allowances,
school tuition, medicals, etc. got $42 million to meet the demands of
customers.
The
CBN spokesman, Mr. Isaac Okorafor who confirmed the figure also disclosed that
the volume of currency trading in the Investors’ & Exporters’ (I&E) FX
Window had cumulatively hit heights of $2.2 billion since the CBN introduced it
on Friday, April 21, 2017 to boost liquidity in the forex market and ensure
timely execution and settlement for eligible transactions.
Okorafor
expressed confidence that the interventions will continue to guarantee
stability in the market and ensure availability of forex to individuals and
business concerns. Financial experts see the increase in the volume of
transactions in the Investors’ & Exporters’ (I&E) segment as a positive
sign of the return of confidence in the financial markets as clearly
demonstrated by the activities in the stock market.
They
averred that the sentiments of investors had strengthened since the CBN
established the I&E FX window in April, which they affirmed had ensured
greater flexibility in forex rate determination. They, however, urged the CBN
to continue its march towards the convergence of rates.
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