CBN injects $205m into foreign exchange market

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Story by Kayode Tokede

In its continued push to sustain liquidity in the sector, the Central Bank of Nigeria (CBN) has injected $205 million into the inter-bank Foreign Exchange Market.

Figures obtained from the CBN indicated that authorized dealers in the wholesale segment of the market were offered the sum of $100 million. While the Small and Medium Enterprises (SMEs) segment received the sum of $55 million.

The sum of $50 million was allocated to customers requiring foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others.

The Director, Corporate Communications Department at the CBN, Mr. Isaac Okorafor, said that the Bank’s effort had helped to guarantee stability in all the exchange rate windows.

Okorafor noted that the dogged implementation of the country’s foreign exchange restriction to some 43 items had boosted activities in the industrial sector.

He added that the move had equally increased the level of confidence investors and the public had in the Naira.

The last intervention the Bank was $268.6million and CNY29.2million into the Retail Secondary Market Intervention Sales (SMIS) segment.

Meanwhile, the Naira on Tuesday, May 28, 2019, exchanged at an average of N361/$1 in the BDC segment of the market.

The Naira against the dollar depreciated by 0.01per cent to N360. 63 in the Investors & Exporters Foreign Exchange (I&E FX) window, but closed flat at N361.00 at the parallel market.

Total turnover in the I& E FX decreased by 58.49 per cent to $136.97 million, with trades consummated within the N356.00-N361.40/dollar band.

At the money market, the overnight lending rate declined by 186 basis points to 13.43per cent, in the absence of any significant outflows.

Sentiments in the Treasury bills market were mixed, with a bearish tilt, as average yield expanded by one basis point  to 12.17per cent. Sell pressure was concentrated at the long (+2 bps) end of the curve, with yield on the 206DTM (+29 bps) bill expanding. Yields at the short and mid segments were flat.

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