CBN defends Naira with $430.04m, CNY 28.3m 4days as Naira trades flat

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The Central Bank of Nigeria (CBN) between August 6 and 9 has defended Naira with an accumulative $430.04 million and CNY 28.3 million, our correspondent can report.

The apex bank intervention in the foreign exchange continued to strengthen the local currency and boost economy activities in the country.

Our correspondent gathered that the apex bank on August 6, injected $210million into the market and another $280.04million, CNY 28.3million Into Retail Secondary Market Intervention Sales (SMIS).

Our correspondent gathered that the CBN on August 6 offered authorized dealers in the wholesale segment of the market the sum of $100million, while the Small and Medium Enterprises (SMEs) and the invisibles segments each received the sum of $55 million.

Consequently, CBN defended Naira with $280.04million and CNY 28.3million Into retail SMIS on August 9, 2019.

Speaking on the last intervention, the Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, said request was from dealers in the agricultural and raw materials sectors as well as Renminbi-denominated Letters of Credit.

Okorafor further expressed satisfaction over the stability of the foreign exchange which according to him, was largely due to sustained intervention by the Bank.

He, however, reiterated assurances that the Bank’s management would remain committed to ensuring that all the sectors of the forex market continue to enjoy access to the needed foreign exchange.

However, the Naira on Tuesday traded flat amid the two-day holiday that was declared by federal government.

The naira against the dollar at the parallel market traded flat at N360.00. It also remained flat at N445 and N398 against the Pounds and Euro respectively.

Analysts at Cordros Capital said, “Looking ahead, while we acknowledge there might be continuous depletion of reserves amidst sell-offs from foreign investors and the softer crude oil price, we still expect the naira to remain resilient in the short to medium term.”

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