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CBN injects $364m as naira depreciates to N370/$ in parallel market

By Babajide Komolafe
The Central Bank of Nigeria (CBN) Tuesday injected $364 million into the interbank foreign exchange market, in a bid to sustain its intervention and boost liquidity in the foreign exchange market.

Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele

Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okororafor disclosed this in a statement yesterday, He said:  “The CBN intervened in the inter-bank foreign exchange market to the tune of $364million in a bid to sustain liquidity in the market.

“The Retail Secondary Market Intervention Sales (SMIS) received the largest allocation of $264.19 million. The CBN also offered the sum of $100 million to authorised dealers in the wholesale window.

He said the CBN also received requests from authorized forex dealers on behalf of their customers, for which results will be released, stressing that the CBN remained committed to achieving a convergence of rates at the inter-bank and bureau-de-change segments of the market.

Also, the CBN, in a bid to improve foreign exchange availability in the Nigerian Forex Market and ameliorate challenges encountered by critical stakeholders, says payment for port charges to the Nigerian Ports Authority (NPA) and other agencies by oil marketing companies can now be accommodated by the Bank using Form ‘A’.

A circular signed by the Director, Trade and Exchange Department, Wuritka Dauda Gotring, directed authorized dealers to accept the request for the payments of port charges from oil marketing companies and forward same to the CBN Forex window.

Meanwhile, the naira yesterday depreciated to N370 per dollar in the parallel market, as the exchange rate for the market maintained its upward trend, rising by N2 from N368 per dollar on Monday. Consequently the naira has depreciated in the parallel market by N3 this week.

The naira however recorded marginal appreciation in the Investors and Exporters (I&E) window, as the indicative exchange rate dropped to N362.38 per dollar yesterday from N362.50 on Monday, translating into 12 kobo appreciation for the naira.

But the volume of dollars traded in the window dropped by 20.6 per cent to $93.21 million yesterday from $117.36 million on Monday.


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