A Policy shift at the Central Bank of Nigeria (CBN) has brought reprieve to the troubled naira. The currency remained fairly resilient last week as the CBN injected $210 million into the inter-bank foreign exchange (forex) market to provide liquidity and stability.
In the parallel market, the naira appreciated by 1.1 per cent from N370.00/$1.00, gaining N4 to close the week at N366.00/US$1.
Analysts believed the showing followed the CBN’s special intervention in the Bureaux De Change (BDC) segment of the market on Thursday.
The $15,000 weekly Yuletide special intervention forex sales to BDC operators begins tomorrow.
In a statement, CBN Director, CBN Trade & Exchange Department U. Abdullahi explained that with the approach of the Yuletide and the resultant increase in the demand for Personal/Business Travel Allowances, the apex bank has in addition to the existing market days, Monday, Wednesday and Friday, introduced a special intervention day on Thursday.
“Consequently, all BDCs should note that the cut-off time for receiving naira deposits into their respective bank accounts for the Thursday’s special intervention shall be 10am on the Thursday. All operators are hereby advised to ensure strict compliance with the provisions of the extant regulations on the disbursement of forex cash to their respective customers as any case of infraction will be appropriately sanctioned,” Abdullahi said.
Authorised dealers in the wholesale segment of the market, in Monday’s sales, received $100 million, while the Small and Medium Enterprises (SMEs) and the invisibles segments were allocated $55million each.
CBN Director in charge of Corporate Communications Department Isaac Okorafor, while confirming the figures, restated the bank’s resolve to meet genuine customers’ request in the various segments of the market especially in the preceding period of the Yuletide and in the New Year.
At the Annual Bankers’ Dinner in Lagos, CBN Governor Godwin Emefiele, warned speculators not to bet against the naira. Despite the uptick in the exchange rate last week, Emefiele said the bank had enough reserve to defend the naira.
On November 30, the Bank injected $331.22million in retail Secondary Market Intervention Sales (SMIS) and Chinese Yen CNY51.86 million in the spot and short-tenored forwards of the inter-bank foreign exchange market.
As at Tuesday, the naira continued to exchange at an average of N365/$1 in the BDC segment of the market.
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