Naira sets for rebound as CBN lifted forex market with $250m

The Nigerian currency, Naira, on part of rebound after dropping two pints against the dollar at the parallel market, while registering a slight decline at the official foreign exchange market.

But the Central Bank of Nigeria (CBN) in its continued efforts to ensuring liquidity in the forex market, again injected another fresh $250 million into the system this week, so as to enable the local currency rebounded from the decline rate of 367 to the dollar traded at the parallel, as well as the 306 per dollar exchanged at the official forex market.

The details of the newly intervention fund showed that the wholesale sector got $100 million, while the Small and Medium Enterprises, SMEs window received a boost of $80 million.

Another allocation of $70 million went to those requiring foreign exchange to address their needs for Business/Personal Travel Allowances, school tuition, medicals, among others.

Although, statistics obtained showed that the Naira, had relapsed at the parallel market to close at 367 which was weaker than 365 it has been selling in the recent time.

But the Acting Director, Corporate Communications Department, CBN, Mr. Isaac Okorafor, said although the interventions ensured stability in the market, the CBN remained committed to maintaining transparency in the market.

He said the CBN had taken measures to check the activities of speculators and shield the currency from attacks, while also maintaining the international value of the Naira.

While assuring authorised dealers of sufficient funds to meet the foreign exchange needs of customers, Mr. Okorafor urged all operators to adhere strictly to the extant guidelines on the sale of FOREX in the Nigerian FOREX market.

He advised those in genuine need of FOREX to continue to approach their respective banks for purchase, adding that the Bank remained optimistic the Nigerian currency would fare strongly against other notable currencies around the world.

On the convergence target by the CBN between the FOREX rates at the inter-bank market and the Bureau de Change, BDC, the CBN spokesperson said the goal would be attained if “all stakeholders played by the rules.”

The CBN last week assured customers of adequate foreign exchange in the market, dispelling fears of a scarcity of foreign exchange in the Nigerian forex market.

The naira, had traded a week at 305.90 at the official forex market but further dropped to 305.95 and extended the losing streak to stood at 306 per dollar earlier this week