Wednesday, June 7, 2017
Naira Gains Seven Points Against Dollar After CBN Intervention
Naira dropped to N363 per dollar from N370 per dollar on Monday in an impressive 7-point gain. Analysts attribute the development to a combination of weak demand and increased dollar supply.
Another factor was Monday’s injection of another $190 million into the market by the Central Bank of Nigeria (CBN)
The acting director, Corporate Communications, CBN, Isaac Okorafor, had in a statement, said $100 million was offered as wholesale interventions and $50 million was allocated to the Small and Medium Enterprises (SMEs) FOREX window.
He said $40 million was also allocated to accommodate customers requiring FOREX for business, Personal Travel Allowances, tuition and medical fees. Mr. Okorafor said Naira had made tremendous gain against the dollar in recent times. He said FOREX rates at both the inter-bank and BDC segments had almost converged, prompting even greater optimism that the value of the Naira would 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.
Okorafor said the CBN had also released new guidelines to further develop the foreign exchange market and improve its structure.
“The new circular, among other provisions, allows authorised dealers to sell their excess foreign currency to other authorised dealers without seeking prior approval from the CBN,” he said.