CBN injects $210 million into forex market to support naira during festive season

Nigeria's central bank (CBN) has injected $210 million into the inter-bank segment of the foreign exchange market to support the country's local currency during the festive season.

Breakdown of the amount released by the CBN on Thursday, December 27, 2018, shows that the wholesale sector of the market received $100 million, while the Small and Medium Enterprises and invisible sectors each received $55 million.

Isaac Okorafor, CBN spokesperson said the forex intervention is in continuation of the apex bank’s resolve aimed at sustaining the high level of stability in the forex market and continually ease access to the currency by customers in the different sectors.

On Thursday, the naira gained N1 against the US dollar to close at N364 from N365 its exchanged during the Christmas period. The local currency closed N364.35 and N307 to a dollar at the Investors’ & Exporters’ FX Window and official markets respectively.

CBN sacrifices foreign reserves for stable naira

Nigerian naira and US dollar ece-auto-gen

At the IMF/World Bank annual meeting in October, Godwin Emefiele, the CBN governor said Nigeria's target is to ensure stable currency rate to avoid depreciation of the naira.

Emefiele said the present economic conditions cannot allow reserves build up in the place of foreign exchange.

Nigeria's foreign reserve currently stands at $43.3 billion away from the $50 billion targets the country had projected.