The Central Bank of Nigeria (CBN) and Nigeria Autonomous Foreign Exchange Market (NAFEX) also known as Investors and Exporters (I&E) window has attracted an inflow of $1.889 billion into the Foreign Exchange market last week.
The CBN had in its two interventions held last week pumped in $513.91 million as $1.38 billion flowed into the market through the I&E window. The value of the naira at the primary market however depreciated to $306.20 from $305.15 which it traded at as at the beginning of trading on Monday, the pounds sterling also slightly appreciated against the naira as it traded at N397.91 from $396.16 also the naira appreciated against the euro to sell at N355.53 as at the end of trading on Friday.
At the I&E window the value of the naira fluctuated throughout the week as it stood at N362.78 on Monday but depreciated to N363.04 on Wednesday, it was however able to firm at N362.78 at the end of trading on Friday. The highest inflow last week at the window was on Wednesday when $408.08 million flowed in despite the dollar selling at N363.04/$.
The CBN had pumped in more inflow aside the $210 million it intervened with on Tuesday to cater for requests in the wholesale segment of the forex market as well as for customers requesting invisibles such as tuition fees, medical payments and Basic travel Allowances (BTA). It injected an additional $303.91 million on Friday, September 7, 2018 into the interbank retail Secondary Market Intervention Sales in addition to the sale of CNY 46.58 million in the spot and short-tenored forwards.
The figures obtained from the CBN on Friday, September 7, 2018 showed that the US dollar-denominated interventions were only for concerns in the agricultural and raw materials sectors.
Director, Corporate Communications at the CBN, Mr. Isaac Okorafor, said that the exercise which was in tune with the CBN guidelines, were for the payment of Renminbi denominated Letters of Credit for agriculture as well as raw materials. He added that the sales in the Chinese Yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorized dealers.
He also noted that availability of Renminbi was sure to ease pressure on the Nigerian foreign exchange market, Okorafor attributed the relative stability in the foreign exchange market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market. He further assured that the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the needed foreign exchange by Nigerians.
Meanwhile, at the Bureau de Change (BDC) segment of the foreign exchange market, the naira firmed at N359/$, N478/£ and N413/€ while CNY exchanged for N53.35.