CBN will sustain forex market intervention – Emefiele

Godwin Emefiele, CBN Governor

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, says the abank is determined to see the convergence of rates at the foreign exchange market.

Mr. Emefiele said this while fielding questions from journalists at the end of the Monetary Policy Committee (MPC) meeting of the CBN in Abuja on Tuesday.

The CBN governor denied that the bank was directed by the National Economic Council (NEC) to intervene in the FOREX market before it started injecting money into the interbank market.

“NEC did not direct the CBN as is being insinuated in some quarters.

“We have seen the trend and we took decision to revise it through our FOREX intervention,’’ Mr. Emefiele said.

He said the CBN was optimistic that the rate between the official and parallel market would converge further.

When asked if the CBN could sustain the policy, Mr. Emefiele said the bank had the capacity to take decisions and implement them.

He noted that the nations’ foreign reserves had improved further to $31 billion.

The News Agency of Nigeria (NAN) reports that the MPC rose from its meeting with a retention in the Monetary Policy Ratio (MPR), Cash Reserve Ratio (CRR) at 22.5 per cent and liquidity ratio at 30 per cent.

Since February when the CBN started its intervention at the interbank market, it had injected more than 1.5 billion dollars, and the Naira had extended its gains against the dollar.

To further sustain its intervention at the market, the apex bank injected another 180 million dollars on Monday to meet the needs of schools, medicals, business and personal travel allowances.

NAN reports that in January, the Association of Bureau De Change Operators of Nigeria (ABCON) appealed to the CBN to ensure rate convergence as well as eliminate the multiplicity of rates in the market.

Meanwhile, the Naira had continued to appreciate at the parallel market, exchanging at N420 (buying rate) and N430 (selling) on Tuesday afternoon.

The Pound Sterling and the Euro closed at N530 and N450 respectively. (NAN)

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