ABUJA, (Sundiata Post) – The Central Bank of Nigeria (CBN) has promised to sustain its intervention in the Foreign Exchange (FX) market to further achieve stability of the Naira.
This is after the release of a total of $768 million last week for auction at the retail market as well as wholesale auction, for BTA/PTA and schools’ fees.
The Acting Director of Corporate Communication of the CBN Mr Isaac Okorafor disclosed on Sunday, saying the apex bank’s has avowed determination to ensure ample supply of foreign exchange in the market.
According to Okorafor, the CBN on Friday 7th April 2017 auctioned the sum of $418 million at the retail-SMIS at a marginal rate of N310/$1 (The airlines, agriculture, petroleum and raw materials/machineries sub sectors benefitted from the auction).
He said it was in addition to the sum of US$350 million sold as wholesale auction, BTA/PTA, and school fees during the week.
The bank Spokesman said that in the weeks ahead, the CBN will sustain its intervention through the sale of foreign exchange to all segments of the market i.e. PTA/BTA, Wholesale SMIS, Retail SMIS and the BDC.
He stated that the bank will sell short tenures forwards of 7-30-day maturity to meet demand of manufacturers and all other foreign exchange users.
Okorafor noted that these significant injections of foreign exchange into the market should reassure all foreign exchange users of the bank’s determination to continue to meet all legitimate FX demand in the market while striving to achieve exchange rate stability in the market.