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CBN to sustain intervention in Forex market

The Central Bank of Nigeria (CBN) has expressed willingness to sustain its intervention in the foreign exchange market (Forex) to help stabilise the naira and improve the nation’s economic growth.

Isaac Okoroafor, the bank spokesperson said on Sunday that “the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market i.e. PTA/BTA, Wholesale SMIS, Retail SMIS and the BDC” in the weeks ahead .

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The apex bank said it will “sell short tenured forwards of 7-30-day maturity to meet demand of manufacturers and all other foreign exchange users”.

“These significant injections of foreign exchange into the market should reassure all foreign exchange users of our determination to continue to meet all legitimate FX demand in the market while striving to achieve exchange rate stability in the market,” Okoroafor said in the statement.

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In its avowed determination to ensure ample supply of foreign exchange liquidity in the market, “CBN last Friday auctioned the sum of US$418 million at the retail-SMIS at a marginal rate of N310/$ (The airlines, agriculture, petroleum and raw materials/machineries sub sectors benefitted from the auction)”.

This amount of money according was in addition to the sum of US$350 million sold as wholesale auction, BTA/PTA, and school fees during the week.

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