The naira depreciated at the Investors and Exporter’s window (I&E) window yesterday even as the Central Bank of Nigeria (CBN) and the Nigeria Autonomous Foreign Exchange Market (NAFEX) injected the sum of $1.38 billion into the foreign exchange market last week.
The Investors and Exporters (I&E) window which had a boom in trading in the preceding week with an inflow $1.49 billion saw a drop in inflow as it opened for trading for only three days as a result of the Sallah break, in spite of this it saw an inflow of $840 million into the forex market. The naira however depreciated to N363 yesterday from N362.50 on Monday and N362.35 on Friday last week.
The CBN had intervened in the market twice last week has it injected a total sum of $543.22 million into the inter-bank foreign exchange market on Thursday and Friday. The apex bank also injected CNY 63.21 million into the market.
At the Thursday’s trading, the Bank offered the sum of $100,000,000 as wholesale interventions and allocated the sum of $55,000,000 to the Small and Medium Enterprises (SMEs) forex window. Also, the invisibles window, which caters for customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, received $55 million.
Similarly, on Friday, August 24, 2018, the Bank injected the sum of $323.22 million into the interbank retail Secondary Market Intervention Sales and sold a total of CNY 63.21 million in the spot and short-tenored forwards, arising from bids received from authorized dealers.
The CBN spokesperson, Isaac Okorafor, who confirmed the figures, said the Bank remained committed to maintaining the country’s external reserves to safeguard the international value of the Naira in line with the Bank’s mandate.
According to Okorafor, the Bank’s management of the forex market had entrenched transparency in the market and continued to strengthen the value of the naira against other major currencies of the world.
On the sale of Chinese Yuan (Renminbi), Mr. Okorafor disclosed that it was in line with the CBN guidelines, which stipulate that it would be for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials.
While also noting that availability of the Chinese currency would ease pressure on the Nigerian foreign exchange market, he attributed the relative stability in the foreign exchange market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market. He further pledged that the Bank would ensure that the requirements of customers in all sectors of the foreign exchange market are guaranteed access to required foreign exchange.
Meanwhile, the figures obtained from the Bureau de Change (BDC) end of the parallel market showed that naira has continued to fluctuate between N358.8 and N360 to $1, while CNY 1 exchanged for N53.17.