…as CBN injects $262.5m
By Ayobami Adedinni
Within nine days of trading, the Investors & Exporters (I & E FX) window as at close of January 12, 2018 recorded a whopping total transactions’ turnover of $2.05 billion, Nigerian NewsDirect can report.
Due to low investors’ confidence and foreign exchange scarcity in 2017, the Central Bank of Nigeria (CBN), in a bid to ease the challenges faced by Nigerians in April last year, created the special window for investors and exporters.
In the early trading week, a total turnover of $575.6 million was traded but increased to $1.48 billion in five days trading.
The Naira strengthened against the Dollar at the I & E Fx window by 0.25 per cent to N360.41/ Dollar week-on-week (w-o-w) amid the injections by the Central Bank of Nigeria with $210 million into the foreign exchange market of which $ 100 million allocated to Wholesale (SMIS), $55 million was allocated to Small and Medium Scale Enterprises and $55 million was sold for Invisibles.
In its first SMIS for the year, the CBN on Friday, intervened in the inter-bank Foreign Exchange Market with the total sum of $262,500,000.
Data received from the CBN on Friday revealed that the sum was in favour of the agricultural, airlines, petroleum products and raw materials and machinery sectors.
The Acting Director in charge of Corporate Communications at the Bank, Mr. Isaac Okoroafor confirmed the figures, noting that the releases remained targeted at boosting production and trade in addition to sustaining liquidity in the market.
According to him, the CBN would not relent in its resolve to make the inter-bank forex market liquid; stressing that the Bank was committed to driving economic growth and guarantee stability in the market.
Okoroafor also reiterated that the Bank’s intervention had effectively checked the activities of speculators, assuring that the Bank would continue to monitor, thoroughly, the activities of authorised dealers in order to checkmate possible sharp practices.
However, the Naira closed flat against the Dollar at both the parallel market segment and interbank foreign exchange market segments at N363/Dollar and N330/Dollar respectively while it depreciated at the Bureau De Change (BDC) by 0.28 per cent to N361/Dollar despite weekly interventions and increased foreign reserves.