CBN Further Opens Up FX Market, Pumps In Fresh $190m




By Nse Anthony-Uko
ABUJA, (Sundiata Post) – The Central Bank of Nigeria (CBN) on Monday announced further liberalization of the foreign exchange market, even as it injected fresh $190 million into the market to further boost liquidity.
The liberalization policies announced in a circular, will among other things, allow authorized dealers to sell their excess foreign currency to other authorized dealers without seeking prior approval from the CBN.
Relentless in its drive to achieve convergence of rates in the interbank and Bureau de Change the CBN offered $100 million as wholesale interventions and allocated the sum of $50 million to the Small and Medium Enterprises (SMEs) forex window.
Also, customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, got $40 million.
Confirming the figures on Monday, the Acting Director, Corporate Communications at the CBN, Isaac Okorafor, said the Bank was pleased at the performance of the naira, which had made tremendous gain against the dollar in recent times.
According to him, the forex rates at both the inter-bank and BDC segments, had almost converged, prompting even greater optimism that the value of the naira will continue to spike.
Okorafor observed that by ensuring transparency in the market as well as fairness to end-users, the CBN had further exposed speculators and checkmated them. He therefore urged all dealers, particularly licensed BDCs, to continue to play by the rule, adding that the CBN would not hesitate to wield the big stick against any erring bank or dealer.
The naira continued to maintain its strong stand against major currencies around the globe, exchanging for $364/$1 in the BDC segment of the market on Monday.
Meanwhile, the CBN, also on Monday, issued a cicular aimed at further developing the foreign exchange market and improving its structure.
According to Okorafor, the new circular, among other provisions, allows authorized dealers to sell their excess foreign currency to other authorized dealers without seeking prior approval from the CBN.





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