Forex market swells by $1.14 billion in two weeks as CBN inserts fresh $100 million

Central bank of Nigeria (CBN)
Central bank of Nigeria building

The Nigerian interbank foreign exchange market received another boost on Tuesday, with the further injection of $100 million by the Central Bank of Nigeria, CBN.  

The fund is the fourth intervention by the CBN in continuation of its effort to ease access to FOREX by Nigerians to meet their needs for tuition fees, medical bills as well as personal and basic transport allowance.

The spokesperson of the CBN, Isaac Okorafor, said in Abuja, that the fresh injection of funds brings the total amount so far injected into the interbank FOREX market within the last two weeks to $1.138 billion for both forwards and invisibles.

Following the review of the FOREX policy more than two weeks ago, the CBN opened its series of interventions in the interbank market with a $500 million placements.
The second intervention was the injection of about $270 million, while the third placement was on Monday, with a total of $367.13 million supplied to the market to meet the requests of customers.

Monday’s intervention was made up of about $144,073,753.07 for 45 days requests, while $223,060,576.86 was for 60 days.

Close watchers of the market said on Tuesday the CBN interventions would further boost the chances of the Naira to consolidate on its value, which strengthened significantly in the last few weeks since the review of the FOREX policy.

A former economic adviser to the President, Ode Ojowu, hailed the efforts by the CBN to stabilise the market and strengthen the Naira.

“It appears this time around, the CBN has decided to become smarter than the market manipulators, by putting on its cap of authority to look beneath the market forces,” Mr. Ojowu said.

Last month, the CBN reviewed its policy on the supply of forex to guarantee supply to all categories of end-users.

Since the introduction of the new policy, Naira has appreciated in value, with market stability and confidence almost returning.

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