Naira Reacts As CBN Boosts Forex Supply With $389 Million

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The retail segment of the interbank forex market received a huge boost on Friday after the Central Bank of Nigeria (CBN) intervened with a total of $388.66 million sold to authorised dealers in that sector of the market.

Yesterday’s figures were the results of the bids submitted by dealers since Tuesday, May 2, 2017.

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Speaking in confirmation of the numbers, the Acting Director, Corporate Communications Department at the CBN, Isaac Okorafor, said that $87.885 was for spot sales, while $300.8 million was sold as forwards.

Okorafor also said that the forwards were sold into three tenors of 30, 45 and 60 days respectively. According to him, the Bank sold $100.95 as 30-day forwards; $110.48 million as 45-day forwards and $99.37 as 60-day forwards.

While also confirming that the Bank continued with its intervention in the Bureau de Change (BDC) segment of the market to meet the needs of low-end users, the spokesman said the Bank remained resolute in ensuring that it supplies enough forex to genuine customers and in the process sustain liquidity in the market.

Okorafor, with this development, expressed hope that the CBN would inch even much closer to its objective of convergence of the rates in the interbank and BDC segments.

However, the naira depreciated to N391 to the dollar on Friday at the parallel market, as against the N390 it closed on Thursday.

This is just as the pound sterling and Euro exchanged at N495 and N420, respectively at the segment.

At the BDC, the local currency was sold at N362 to the dollar, while the pound sterling and Euro closed at N495 and N420, respectively.

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Trading at the interbank market saw the naira closing at N305.70 to the dollar.

The naira, however, depreciated at the new investors and exports window as it closed at N383.19, weaker than N382.19, its opening rate.

Currency traders in Lagos said that the offer of 20,000 dollars to each of the BDCs on Wednesday helped to stabilise the naira.



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