CBN Injects $498m in Forex Market in One Week

Central Bank of Nigeria, Abuja

The Central Bank of Nigeria (CBN) raised the sum of $498million of its foreign exchange (forex) intervention in the interbank market .

This figures obtained from the central bank showed that it commenced the week by initial $210 million and thereafter sold another $288 million.

The forex intervention at the beginning of the week was for the small and medium scale enterprises (SMEs) and invisible windows.

Confirming the development, the acting Director, Corporate Communications at the CBN, Mr. Isaac Okorafor said the releases were targeted at sustaining liquidity in the market as well as boosting production and trade.He reiterated that the Bank remained committed to ensuring liquidity in the inter-bank sector of the market and would continue to intervene to drive growth in the economy and guarantee stability in the market.

The official rate marginally appreciated by 10 kobo to N305.85 to the dollar, compare to the previous exchange value N305.95 to the dollar,On the parallel market,the naira traded flat at N364 to the dollar all through the week.

At the I&E Window, the NAFEX rate closed at N360.25 to the dollar. However, activity level strengthened relative to previous week as offshore investors continue to position in naira assets. Weekly turnover improved to$907.68 to the dollar.

In the FMDQ OTC futures market, the total value of open contracts of the naira settled OTC futures for the 12 instruments on the calendar stood at US$3.4billion from US$3.3billion the previous week.

The JUNE 2018 contract received the most subscription (US$40 million) bringing total value to US$185.8 million while the rest of the contracts received minimal participation.