Naira closes stable as CBN lifts forex market with $210m


The nation’s currency closed stable on Wednesday after the Central Bank of Nigeria (CBN) made available the sum of $210 million, to meet customers’ requests in various segments of the foreign exchange market.

In its quest to meet customers needs in the various segments of the market, the CBN offered $100million to authorized dealers in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment got the sum of $55 million. According to figures obtained from the Bank on Wednesday, 23rd May, 2018, customers needing foreign exchange for invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others, were also allocated the sum of $55 million.

At the investors and exporters forex window, naira was quoted at N361.42k per U. S dollar, the same level it traded the previous day, data from FMDQ indicated.

Naira gained 0.01 percent to close at N361.41k on Wednesday as against N361.46k/$ traded on Tuesday at the Nigerian Autonomous Foreign Exchange Fixing (NAFEX).

However, the city street forex trading shows naira trading at N366 per dollar. Aminu Gwadabe, president Association of Bureau De Change Operators of Nigeria (ABCON)said the depreciation is as a result of political anxiety.

It will be recalled that the CBN Governor, Godwin Emefiele, during his post-MPC remarks on 22nd May, 2018 said that the country’s foreign reserve stood at $47.79b and that pressure on the foreign reserve would be reduced as a result of the recent currency swap between the CBN and the Peoples Bank of China.

Also, the Acting Director, Corporate Communications Department (CCD), Isaac Okorafor, reiterated the Banks commitment to continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability. Okorafor said that the CBN would sustain its strategic management of forex, with a view to reducing the country’s import bills and halting depletion of its foreign reserves.

The Bank last Friday, May 18, 2018, intervened to the tune of $293 million to cater for requests in the retail segment of the forex market.

Meanwhile, the naira continued its stability in the forex market, exchanging at an average of N363/$1 in the BDC segment of the market on Wednesday, May 23, 2018.