CBN boost forex market with $1.132bn in April
Mathew Dadiya, Abuja
In continuation of its mediation in the inter-bank foreign exchange market, the Central Bank of Nigeria (CBN) has intervened with the total sum of $1.132 billion in April 2019.
The apex bank on Wednesday injected fresh $210 million to sustain liquidity in that segment of the market. But this in addition to $922.6 million and CNY 70.6 million injected into the foreign exchange market in the last three weeks.
The breakdown of the$210 million fresh injections by the CBN, showed that authorized dealers in the wholesale segment of the market, as in previous deals, were offered the sum of $100million.
Those in the Small and Medium Enterprises (SMEs) segment got a boost of $55 million.
Customers purchasing foreign exchange for Invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allotted a total of $55 million.
The Bank’s Director, Corporate Communications Department, Mr Isaac Okorafor confirmed the transactions, reiterating that the CBN will continue to ensure the availability of foreign exchange in order to ensure continued stability in the markets.
In its last intervention on Thursday, April 18, 2019, the Bank injected the sum of $254.8million and CNY34.8 million into the Retail Secondary Market Intervention Sales (SMIS) segment.
The intervention by the apex banking regulatory body is on the heels to strengthen the naira against other foreign exchanges and also, in a move to bridge the gap between the official rate and the parallel market rate.
The further breakdown of the CBN injection earlier in the month includes $247.8million, CNY 34.8million into Retail SMIS on April 5 and $210 million into the Inter-bank Foreign Exchange Market on April 9.
Others are $210 million from the CBN into the inter-bank foreign exchange on April 16, 2019, and intervened in the retail Secondary Market Intervention Sales (SMIS) with the sum of $254.8million on April 18, 2019.
Also, twice this month, the CBN has injected $420 million of the Inter-Bank Foreign Exchange foreign wholesale segment and $502.6 million into Secondary Market Intervention Sales (SMIS).
The breakdown of the two times the wholesale segment injection showed that authorized dealers were offered the sum of $200 million, while those in the Small and Medium Enterprises (SMEs) the segment received the sum of $110 million.
Consequently, customers requiring foreign exchange for Invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also give an accumulative of $110 million twice in the months of April.
Meanwhile, the Naira on Wednesday, April 24, 2019, exchanged at an average of N360/$1 in the BDC segment of the market.
