Wednesday, 14 June 2017

CBN INJECTS ANOTHER $418M INTO FOREX MARKET

Barely 24 hours after the Central Bank of Nigeria (CBN) boosted the inter-bank foreign exchange market with $413.5 million, the bank yesterday injected another $418m into various segments of the inter-bank forex market.

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.

Meanwhile, the naira remained stable with a high possibility of further strengthening in the FOREX market on exchanging at an average of N363/$1 in the Bureau De Change segment of the market. (Authority)