CBN injects over $1billion into foreign exchange market in two weeks

The Central Bank of Nigeria (CBN), on Tuesday, injected $100 million into the nation’s foreign exchange market, bringing its intervention in the market to $1.12 billion in two weeks.

Meanwhile, the naira appreciated to its highest level against the dollar in the parallel market this year, as the parallel market exchange rate dropped to N448 per dollar at the close of business on Tuesday.

According to a bureau de change chief executive, who spoke on condition of anonymity, “the market is dull and the rates are dropping.”

Since Monday, February 20 2017, when it announced new measures to boost dollar supply and forestall the declining fortunes of the naira in the parallel market, the CBN has intervened in the forex market six times as follows: Tuesday February 21, $417 million; Thursday, February 23, $231 million; Monday, February 27, $180 million; Friday, March 3, $350 million, Monday, March 6, N367 million; and Tuesday, March 7 with $100 million.

Confirming the injection of $100 million, acting Director, Corporate Communications Department, CBN, Isaac Okorafor, said the move by the CBN was to fund the commercial banks with enough forex to cater for the request of customers to meet personal travelling allowance (PTA), basic travelling allowance (BTA), medicals and tuition fees.

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