Naira Trades Flat Despite CBN’s $210m to Foreign Currency Market

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By Modupe Gbadeyanka

The local currency has remained flat at N362 per Dollar despite the $210 million released to the foreign exchange (forex) market by the Central Bank of Nigeria (CBN).

On Tuesday, the central bank injected $210 million into the inter-bank forex market in a bid to boost liquidity in the system.

However, the Naira has remained unchanged at the parallel market, trading at N362/$ since the latest intervention.

Business Post reports that in the latest injection, the CBN sold $100 million to dealers in the wholesale sector, while those in the Small and Medium Enterprises (SMEs) and Invisibles segments received $55 million each.

Spokesman of the apex bank, Mr Isaac Okorafor, who confirmed the disbursement in a statement issued in Abuja, disclosed that the continued interventions in the interbank foreign exchange market was mainly to ensure sustained liquidity and stability in the market.

He said the support has impacted the market positively and guaranteed a stable exchange rate for the Naira, which has since stabilised the foreign exchange market.

He reiterated that the Bank’s interventions had reduced the country’s import bills and boosted its foreign reserves.

Business Post reports further that the local currency has traded flat against the Euro at the black market, selling at N430 since Tuesday when the intervention was made.

However, the Naira, which was sold at N500 to the Pound Sterling on Tuesday, closed at N498 on Wednesday.

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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