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Foreign Reserves Down By $96m In 9 Days As CBN Deepens Intervention



Leadership Nigeria News Today

The nation’s foreign reserves fell by $96 million in nine days following the rapid intervention by Central Bank of Nigeria (CBN) in the foreign exchange market. Data from CBN’s website revealed that foreign reserves that was at $30.97 billion on May 2 moved to $30.87 billion on May 12, 2017, translating into 0.31per cent decline.
For the days under review, the nation’s foreign reserves almost crossed the $30 billion mark to $31 billion on May 4, 2017, following increased inflow from Oil revenue and funds from International Money Transfer Operators (IMTO). Experts have attributed the decline to recent windows introduced by CBN.
The CBN last month opened a new special foreign exchange window dedicated to investors, exporters and end users. In a circular titled: “Establishment of Investors and Exporters Window,” the CBN claimed this new window was introduced to boost liquidity in the foreign exchange market and ensure timely execution and settlement of eligible transactions.
CBN in the same month unfolded yet another policy measure, stating that it has opened a special foreign window for small and medium scale enterprises (SMEs).
The CBN on Monday injected $457.3 million into various segments of the foreign exchange market on Monday.
Speaking with our correspondent, managing director, Cowry Asset Management Limited, Mr. Johnson Chukwu, said it was as a result of recent intervention by the CBN.
“You have heard that CBN has opened a number of foreign exchange windows. There have been a number of interventions such as the retail and wholesale windows.
“The CBN opened a window for exporters and investors and meeting these demands would certainly have exerted pressure on the demands.