FX Intervention: CBN Determined To Sustain Naira’s Exchange Rate- Okorafor

-



The Central Bank of Nigeria (CBN), on Wednesday assured that it is not prepared to abandon one of its core functions of ensuring a stable exchange rate for the Naira.
The assurance is coming amidst apprehension amongst many analysts and observers over the sustained decline in Nigeria’s foreign reserves since attaining its peak on May 11, 2018.

Many are worried that the decline is coming at a time when the price of crude oil, the nation’s biggest revenue earner has remained well above the budget benchmark, just as the peace in the oil rich Niger Delta region has meant the country’s oil production remains robust.
A statement by the apex bank, on Wednesday quoted Isaac Okorafor, Director of Corporate Communication at the CBN as stressing the apex bank’s determination to achieve its objective of exchange rate stability, hence the continued injection in the foreign exchange market.

The statement followed the CBN’s intervention in the interbank foreign exchange market on Wednesday, November 21, 2018, when it injected a total of $210m.
Details of the intervention showed that the sum of $100m was injected into the wholesale segment, while the Small and Medium Enterprises (SMEs) segment received $55m, while the invisibles segment, comprising tuition fees, medical payments and Basic Travel Allowance (BTA), among others, got another $55m.
According to Okorafor, who confirmed the fresh injection, expressed pleasure at the level of transparency in the market has remained a confidence booster for the market.

The CBN, he said, is satisfied with the state of the Nigerian Forex market, assuring of the willingness to continue intervening so as to sustain liquidity therein and guarantee the international value of the Naira.
It will be recalled that the CBN in its last intervention window on November 16, 2018, injected the sum of $318.03m and CNY 62.18m into the Retail Secondary Market Intervention Sales (SMIS).

Meanwhile, the Naira continued to maintain its stability in the FOREX market, exchanging at an average of N361/$1 in the Bureau De Change segment of the market on Wednesday.

https://investdata.com.ng/2018/11/fx-intervention-cbn-determined-to-sustain-nairas-exchange-value-okorafor/#more

Comments

Post a Comment

Popular posts from this blog

Wherever You are NOW is Your Decision

-
Image
                                        Photo credit: entrepreneurfail According to research, very few people are successful at anything at first. I included. The reason only a tiny percentage of the population achieves any significant success or wealth through stock is that few are willing to go through the process of what it takes to achieve in the stock market, and there is no shortcut. In fact, everybody has to go through four levels of learning every single time, and often, in the process - fail, regroup and begin again. Most people blame others like government policies, currency fluctuation, political instability, the election for stopping their progress, but in truth, there's only one person who can put on the parking break and that person is YOU. Furthermore, many people drive around with the break on without knowing it, or once awareness arrives, don't know how to lift their foot off of it. That is why I have been organizing seminars and making them avail
Read more