CBN Puts $195m into Forex Market Ahead of MPC Outcome

By Dipo Olowookere

Yesterday, the Central Bank of Nigeria (CBN) released the sum of $195 million into the foreign exchange market.

This decision was part of its efforts to ensure those who need forex for genuine transactions continue to get it without troubles.

A breakdown of the intervention showed that the amount was disbursed to three segments of the forex market; the wholesale Secondary Market Intervention Sales (SMIS), the Small and Medium Enterprises (SMEs) and the invisibles segments.

It was gathered that while the wholesale Secondary Market Intervention Sales (SMIS) received $100 million, the Small and Medium Enterprises (SMEs) window got $50 million, and the invisibles had $45 million.

CBN Acting Director, Corporate Communications, Mr Isaac Okorafor, disclosed that the apex bank’s intervention was to maintain its commitment to sustain liquidity in the market to meet genuine requests as well as deepen flexibility in the foreign exchange market.

He said the CBN will continue to work on achieving the objective of convergence of rates in the various segments of the market, and would continue to strive that the forex market guarantees transparency in the sale of foreign exchange.

Monday’s $195 million intervention came ahead of the outcome of the CBN’s two-day Monetary Policy Committee (MPC) meeting, which commenced yesterday.

Governor of the CBN, Mr Godwin Emefiele, is expected to address the media today at the end of the meeting to reveal if the council lowered, raised or retain the rates at its present 14 percent.

However, analysts believe the rates would be untouched like in the previous meetings.