The Central Bank of Nigeria (CBN) has made its first Foreign Exchange (FOREX) intervention for 2019 with a total sum of $210 million injected into various segments of the Inter-bank market.
Figures obtained from the CBN on Friday, January 4 2019, showed that authorised dealers in the wholesale sector of the market received the sum of $100 million while the Small and Medium Enterprises (SMEs) and Invisibles sectors were alloted the sum of $55 million each to meet the needs of the customers.
Speaking on Friday, the bank’s Director, Corporate Communications, Mr Isaac Okorafor explained that the CBN would kick off from where it stopped last year in order to maintain the sustainability in the forex market. He added that the bank has made a commendable effort in keeping the exchange rates at the current levels, and the current capital flow reversals from the emerging markets were expected to bring out pressures on the market.
He, however, reassured that, in spite of the anticipated pressures, coupled with the forthcoming elections, the bank was committed to maintaining the current exchange rate policy, given the level of reserves.
Nigeria’s foreign reserves stand at $43.05 billion. On Thursday, January 3, 2019, the foreign reserves dipped by $59.7 million to $43.05 billion from $43.12 billion it closed on the last day of 2018, according to CBN data seen by Business Insider Sub-Saharan Africa.
The CBN Governor, Godwin Emefiele had said the country’s target is to ensure stable currency rates to avoid depreciation of the Naira.
Quoting the governor, Okoroafor said that the CBN was determined to sustain a stable exchange rate. “The CBN is determined to sustain a stable exchange rate as it continues to put in place relevant measures to shore up the country’s reserves,” he said.
The Naira traded at N357 to a Dollar (USD$1) in the Bureau De Change (BDC) segment of the market on Friday, January 4 2019. It closed at N361, appreciating by N1 against the US Dollar at the parallel market. This is about 0.55 percent appreciation from the average N363 it traded in 2018.
