Home Business CBN injects $289m, CNY38.70m into forex market

CBN injects $289m, CNY38.70m into forex market

CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

CBN Governor, Godwin Emefiele
CBN Governor, Godwin Emefiele

The Central Bank of Nigeria (CBN) in another round of intervention, weekend pumped $289.76 million into the retail Secondary Market Intervention Sales (SMIS).

The bank also intervened to the tune of 38.70 million Chinese Yuan in the Spot and Short tenored forwards of the foreign exchange market.

Director of Corporate Communication of the CBN, Mr. Isaac Okorafor, in a statement said the action was in furtherance of the bank’s commitment to ensure adequate liquidity and stability in the market.

Okorafor said that the dollar-denominated interventions were mainly for transactions in the agricultural and raw materials sectors while the sales in Chinese Yuan were similarly for payment of renminbi denominated Letters of Credit for agriculture and raw materials based on bids received from authorised dealers.

He said the CBN was pleased with the level of stability at both the Bureau-de-Change and the Investors’ and Exporters’ window of the foreign exchange market.

According to him, the CBN is also satisfied with the current implementation of the Bilateral Currency Swap Agreement with the Peoples Bank of China.

Okorafor expressed confidence that the foreign exchange market in Nigeria would continue to enjoy stability in the coming months and beyond, given the marginal increase in the country’s external reserves.

The CBN on Tuesday intervened in the wholesale, Small and Medium Enterprises (SMEs) and invisibles windows of the inter-bank foreign exchange market to the tune of $210 million.

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Meanwhile, one dollar exchanged for N361 at the Bureau de Change (BDC) segment of the foreign exchange market, while one Chinese Yuan exchanged for N53.

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