Nigeria's central bank pumps $284.2 million, 36 million Chinese Yuan into the forex market

The move is part of the CBNs efforts to further encourage the cashless policy in Nigeria
  • Nigeria's central bank injects the sum of $284.2 million and CNY 36.0 million into forex market.
  • The CBN says it is satisfied with the continued stability in the foreign exchange market.
  • Nigeria's external reserves peak at $45.07 billion in the first half of 2019.

The Central Bank of Nigeria (CBN) injected the sum of $284.2 million in the Retail Secondary Market Intervention Sales (SMIS) over the weekend

The apex bank also intervened with CNY 36.0 million in the spot and short-tenured forwards segment of the inter-bank foreign market.

Isaac Okorafor, the Bank’s Director, Corporate Communications Department, said the US dollar-denominated transactions were to meet requests in the agricultural and raw materials sectors, while those in Chinese Yuan were for Renminbi-denominated Letters of Credit.

Okorafor reiterated that the CBN was satisfied with the continued stability in the foreign exchange market and assured that the CBN would remain committed to ensuring that all the sectors of the forex market continue to enjoy access to the needed foreign exchange.

Last Tuesday, the apex bank also intervened in the interbank sector of the Foreign Exchange Market with the sum of $210 million.

On Monday, the naira remained stable at the parallel market in Lagos exchanging at N360 to the dollar and N306.90 at the official window. 

At the I&E FX Window, the local currency opened trading at N361.97 to the dollar.

In its post-election strategies, the Central Bank predicted a stable exchange rate stance given the high FX reserves.

The country's external reserves increased by $2 billion, reaching $45.07 billion in the first half of 2019, analysis of the CBN data by Business Insider SSA showed.

Also, while presenting it's 5-year Policy Thrust, CBN governor, Godwin Emefiele, noted that “the country's external reserves have risen from $23 billion in October 2016 to over $45 billion by June 2019.”

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