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CBN, NAFEX Inject $2.1bn Into FX Market In 4 Days

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The Central Bank of Nigeria (CBN) and the Nigeria Autonomous Foreign Exchange (NAFEX) also known as the Investors and Exporters Window (I&EW) last week pushed $2.1 billion into the foreign exchange market.

The apex bank intervened twice in the market last week with $551.75 million in addition to Chinese Yuan 14.7 million as $1.56 billion flowed into the market through the I&E window. At the CBN interbank forex market, the value of the naira-maintained stability to trade at N306.9/$ which it had maintained since the end of trading in the preceding week.

Against the pounds sterling, the official Nigerian currency fluctuated throughout the week to settle at N394.15 while it appreciated against the euro to trade at N337.40 from N338.08 which it traded at the beginning of the week.

At the I&E window, the value of the naira fluctuated throughout the week as it stood at N362.50 on Tuesday but depreciated to N362.79 on Thursday, it however firmed at N362.58 at the end of trading on Friday with trades within the band of N310 to N363.50. At the parallel market the naira-maintained stability to trade at N360.

Meanwhile, Nigeria’s external reserve continue to reduce as it declined to $40.06 billion, the lowest since January 19 2018 as it was at $44.007 billion as at August 23 this year according to figures obtained from the bank.

The CBN’s first intervention of $100 million last Tuesday was offered to authorised dealers in the wholesales segment of the market, while the Small and Medium Enterprises (SMEs) and the invisibles segments each received the sum of $55 million.

The second intervention was in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $341.75 million in addition to CNY14.7 million in the spot and short-tenored forwards segment of the interbank foreign market.

CBN director in charge of corporate communication department, Isaac Okorafor stated that the intervention was for requests in the agricultural and raw materials sectors. The Chinese Yuan on the other hand was for Renminbi denominated Letters of Credit.

Okorafor further reiterated that the market continues to enjoy stability because of the regular interventions by the bank, noting that the demand management approach introduced by the apex bank has yielded positive result.

He added that the apex bank management would remain committed to ensuring that all the sectors of the forex market continue to enjoy access to the needed foreign exchange.

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