…As investors/export segment hits $2.2bn
By Omodele Adigun and Uche Usim, Abuja
A day after it injected $413.5 million into the interbank segment of the forex market, the Central Bank of Nigeria (CBN) again on Tuesday offered another $418 million into various segments of the market.
This is coming on the heels of a cumulative $2.2 billion boost in the transactions at the Investors’ & Exporters’ (I&E) segment of the market.
Figures obtained from the CBN on Tuesday indicate that the retail segment of the market received the highest intervention with a total of $226 million, followed by the wholesale window that received an allocation of $100 million. The Small and Medium Enterprises (SMEs) window received a boost of $50 million while the invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals, etc. was allocated the sum of $42 million to meet the demands of customers.
Confirming the figures, the apex bank’s spokesman, Isaac Okorafor, disclosed that the volume of currency trading in the I&E forex window had cumulatively hit $2.2 billion since it was introduced last April with a view to shoring up liquidity, ensuring timely execution and settlement for eligible transactions at the forex market.
The spokesman expressed confidence that the interventions will continue to guarantee stability in the market and ensure availability to individuals and business concerns.
Recall that the CBN only on Monday, June 12, 2017, injected the sum of $413.5 million into the inter-bank market in its bid to boost liquidity in the market as well as shore up the international value of the naira.
A breakdown of Monday’s figures shows that the apex bank offered the sum of $100 million to authorised dealers in the wholesale window, while the SMEs window was allocated a total of $28 million. The invisibles segment was allocated the sum of $25.5 million to meet the needs of customers in that sector.
Analysts see the increase in the volume of transactions in the I&E segment as a positive sign of the return of confidence in the financial markets as demonstrated by activities in the stock market.
According to them, the sentiments of investors had strengthened since the CBN established the I&E forex window in April, which they agreed had ensured greater flexibility in forex rate determination.
They, however, urged the CBN to continue its march towards the convergence of rates.
Meanwhile, the naira remained stable with a high possibility of further strengthening in the forex market on Tuesday, June 13, 2017, exchanging at an average of N363/$1 in the BDC segment of the market.