CBN Pumps $9.96bn into FX Market in Six Months, Attains Stability

The Central Bank of Nigeria (CBN) has injected $9.964 billion into the interbank segment of the foreign exchange (forex) market since it commenced its aggressive interventions in February this year.

This has helped to ease pressure on Nigeria’s forex market, which prior to the action by the regulator had been pummelled by speculators.

According to figures compiled between February 21 and August 21, the CBN sold the greenback to authorised dealers in 44 sessions.

A breakdown of the dollar sales showed that $680 million was pumped into the market in February, $1.542 billion was sold in March, $1.616 billion in April, $2.102 billion in May, and $1.631 billion in June.

Also, while the central bank offered $1.639 billion to banks to sell to their customers in July, as of August 21, it had sold a total of $754 million.

The $2.102 billion sold by the central bank in May remains the highest in the six months under review.

In May, the central bank sold dollars in eight different sessions, in its bid to stabilise the market and discourage currency speculation.

The dollar sales have been targeted at retail invisibles for PTA, BTA, school fees and medical bills, wholesale forwards, SMEs, and Secondary Market Intervention Sales (SMIS).

-Thisday Newspaper

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