CBN Injects $297m into Forex Market

September 1, 2017/Thisday

Obinna Chima

The naira is expected to appreciate in the coming days as the Central Bank of Nigeria (CBN) yesterday injected $297 million through Secondary Market Intervention Sales (SMIS), raising the total intervention for the week to $547 million.

Confirming the figures, the CBN spokesman, Mr. Isaac Okorafor, the acting Director, Corporate Communications Department disclosed that the Bank was resolute in its determination to intervene in the forex market with the aim of uplifting the naira exchange rate, boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.
The spokesman also expressed confidence that the interventions would continue to guarantee stability in the market and ensure availability to individuals and business concerns with genuine demand for forex transactions.

The central bank had on Monday intervened in the interbank forex market to the tune of $195 million in three segments of the market. In the wholesale segment of the interbank, it had sold $100 million and also uplifted the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45 million respectively.

Okorafor had hinted that the central bank would increase liquidity in the market in the coming days, noting that the move by the CBN is necessary to enhance stability in the FX market.