CBN Backs Forex Market with Fresh $195m
By Modupe Gbadeyanka
On Monday, the Central Bank of Nigeria (CBN) sustained its regular intervention in the foreign exchange (forex) market with the release of another $195 million.
It was the same amount the central bank released into the market last Monday to sustain the fluidity of forex at the market.
Acting Director in charge of Corporate Communications at the apex bank, Mr Isaac Okorafor, explained that Monday’s release was to ensure the Naira sustain its steady run against the Dollar and other major foreign currencies.
However, he emphasised that the market will remain very stable as long as every player sticks to the forex guidelines.
A breakdown of the $195 million pumped into the inter-bank segment of the forex market showed that $100 million was allotted to authorized dealers in the wholesale segment of the market, $50 million went to the Small and Medium Enterprises (SMEs) segment, and $45 million left for the invisibles, which include tuition fees, medical payments and Basic Travel Allowance (BTA), among others.
Mr Okorafor said the CBN was confident with the level of transparency at the market and called for more support.
“The market will remain very stable as long as every player sticks to the forex guidelines,” the apex bank’s spokesman said.