CBN Sustains Forex Liquidity With $210m

By Modupe Gbadeyanka

The Central Bank of Nigeria (CBN) again on Tuesday released the sum of $210 million to authorized traders in the foreign exchange market in the country.

This was to sustain the liquidity level at the market as some foreign portfolio investors continue to request for greenback as they exit the Nigerian capital market due to declining yields and uncertainties.

The sale of forex to traders on Tuesday came after a similar exercise was done last Friday, where the CBN injected the sum of $321.11 million and CNY33.3 million into the Retail Secondary Market Intervention Sales (SMIS) segment to make supply of forex liquid to customers.

During yesterday’s intervention, the apex bank, as usual, allocated the sum of $100 million to the wholesale segment of the market, while the sum of $55 million was given to the Small and Medium Enterprises (SMEs) segment.

For forex traders in the invisibles window, they were allotted another $55 million so they can meet the demands of customers requiring forex for tuition fees, medical payments and Basic Travel Allowance (BTA), among others.

As a result of the injection from the central bank yesterday, the local currency, Naira, was traded at an average of N357/$1 in the BDC segment of the market.

According to a statement issued by the Director of Corporate Communications Department at the apex bank, Mr Isaac Okorafor, efforts would be made to ensure stability in foreign exchange market.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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