CBN Boosts Forex Market With Additional $100m To Cater For Pilgrims

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CBN Boosts Forex Market With Additional $100m To Cater For Pilgrims

The Central Bank of Nigeria (CBN) on Thursday, May 24, injected additional $100 million into the foreign exchange (Forex) market, barely a day after the apex bank had made available $210 million on Wednesday.

In a statement it issued with respect to the latest injection, the CBN said the money was injected to cater for the personal needs of Nigerians who may want to travel to fulfill personal obligations, particularly for pilgrimage, Premium Times reports.

According to the bank, the move was to safeguard the interest of customers seeking to purchase foreign exchange for personal obligations and checkmate any attempt at causing panic in the market.

$210 million was allocated to the wholesale segment of the market on Wednesday to take care of the the spike in the seasonal demand for foreign exchange to meet various personal obligations.

The statement said the CBN plans to inject more dollars into the market in the coming days, to checkmate any attempt to trigger artificial scarcity.

The CBN spokesperson, Isaac Okorafor, said the decision to inject fresh funds became necessary to protect customers from the activities of speculators who might want to capitalise on the increase in demand for foreign exchange at this time to make brisk gains.

Noting that the CBN had sufficient foreign exchange to meet genuine needs, Mr Okorafor cautioned dealers against speculation.

He warned that they stood to lose much if they chose to hoard currencies in anticipation of a spike and a depreciation in the value of the Naira.



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