The Central Bank of Nigeria on Tuesday injected another sum of $100m into the interbank foreign exchange market, its acting Director, Corporate Communications, Isaac Okorafor has said.

Okorafor said the measure became necessary as part of the initiatives to make Forex easily accessible, thereby crashing demand at the black market.

The director made this known to newsmen in Abuja on Tuesday.

He said that the measure was to fund the commercial banks with enough Forex to cater for the request of customers and to meet basic travelling allowance, medicals and tuition fees.

This fresh injection by the apex bank brings the amount so far pumped into the interbank Forex market within the last two weeks to $1.14bn for both forwards and invisibles.

A former Economic Adviser to former President Olusegun Obasanjo, Prof. Ode Ojowu said the measure would further create problems for currency speculators who had not recover from the sudden appreciation of the Naira.

“It appears this time around, the CBN has decided to become smarter than the market manipulators by putting on its cap of authority to look beneath the market forces,” he said.

Ojowu also commended the efforts of the CBN in ensuring the continuous appreciation of the Naira.

He attributed this to good policy and effective communication strategy, which had increased dollar supply to the market.

http://investorsking.com/forex-cbn-pumps-additional-100m-market/

Is this sustainable on the long run?

GogetterMD:
Is this sustainable on the long run?

Been thinking of that too bro! But I think the logic behind this is that if the naira keep appreciating for some time, the speculators and hoarders will be forced to release their grip on their withheld cash hence increasing the amount of forex in circulation.

Just return the dollar to 185 naira, at least that was what these guys met before scattering everything with their visionless policies.

They should keep pumping it in....

To what end?

Adesiji77:
They should keep pumping it in....

Till they no longer can.

Adesiji77:
They should keep pumping it in....

Speculators' headache

It seems no crude oil no nigeria,
So without this little increase in crude oil market there is nothing anybody I mean anybody could have done?
How can a country enjoy oil boom for more than 30yrs without any tangible source of income?
May God deliver us.

d

A paint of Garri is now 1k is dollar affecting it too?

so this is the only way out now?? Btw keep pumping...

But things are still expensive nd price increment in the market soooo am nt feeling the effects

Doing d same thing and expecting different result...

All these pumps hmmmm ....

Hope there will not be after effects ..


Cutting the tree from the top is not a solution

Good thinking, good product, good finishing

plainol:
Just return the dollar to 185 naira, at least that was what these guys met before scattering everything with their visionless policies.

Lie! It was N247!

maxiuc:
But things are still expensive nd price increment in the market soooo am nt feeling the effects

Not so fast, just pray it further crashes and remain sustainable.

If the prices of oil in the international market appreciates and the strength of the pipeline vandals depreciates drastically, then Nigeria is indeed on the road to recovery.

This is a short-term measure to alleviate the suffering of Nigerians especially the low-income earners who can no longer meet their daily needs due to rising cost of goods and services. The long-term solution to our problems is diversification and it will take us nothing less than 20years to diversify fully ceteris paribus.
God Bless PMB/PYO
God Bless Nigerians
God Bless Nigeria.

plainol:
Just return the dollar to 185 naira, at least that was what these guys met before scattering everything with their visionless policies.

Ha, you can lie for Africa

Nice one. They should strictly monitor it's utilisation to avoid speculative purchases.

Buhari!!!

We kept on shouting that the main problem with Naira falling was scarcity. We didn't have enough reserve to defend the Naira, cos IB lavished it with his friends with nothing to show for it. We got hit by low oil price, we got hit my renewed militancy. Our reserves couldn't build up. The amount left in the reserve was roughly what Sanusi used to defend thr Naira doing the global reccession. We tried to explain all this, they shut us up cos of their configuration to wail complexly. Their new strategy is to pitch the "mere commissioner" against Buhari, same man they hated and abused so much. It is obvious they can support even Shekau just to spite and massage their foolish hatred for Buhari. Oil price as increased, terrorists in the Niger delta have sheath their sword. Things are picking up. We will get there


But the question is

How long will Nigeria keep depending on Oil and Oil Price? If thre is change in the oil output and price, we are back to square 1.

God help my country!

[color=#990000][/color]Adonblivit till ah see it, till it gets to my doorstep, till garri painter retons to its usual price, till okpa returns to #30, till many tins apn

plainol:
Just return the dollar to 185 naira, at least that was what these guys met before scattering everything with their visionless policies.

Not going to happen for the following reasons

1.Government is not earning enough dollars from oil to buffer the naira. We were able to keep the naira below N200 simply because then we were earning enough forex to buffer the dollars.

2.Part of the reason why govt is not earning enough forex is the fall in oil prcies . As a result, CBN is forced to restrict the dollar outflows from the country.....so as to have dollars to buffer the naira and meet our financial obligations. This has the bad effect of driving away foreign investors....since they cannot remit their dollars to their home countries easily.....unlike during the time when oil prcies were sky high ...and there were enough dollars flowing in .....which meant no need for restrictions.(And for the GEJ did not save crowd....saving lots of money won't have stopped CBN from restricting forex outflows....since every savings has a finite lifespan when you begin eating from it).

3.If you want the naira to go down to N1=$1, you do either of these two things

a) Diversify the export base...ie export more agric products and more solid minerals (Nickel in Kaduna state loading...) . Back in 1978...when N1=$1...Nigeria was a world leader in the export of cotton, groundnut, palm oil, benninseed, tin, columbite, and we had an oil boom going on. Enough dollars flowing in.

b) Ramp up domestic manufacturing...with the aim of exporting more manufactured goods...which is what China, Japan and many developed countries do.

And this measures take time...and money.(We may have to take a loan, in my opinion, to boost power, water and transport....and even agric production specifically....in the short term.)

For now, CBN can afford it....

SamuelAnyawu:

Ur signature tho, better start preparing something like BMC. May be AMC(ayanwu media center)

The dollar was 175
Jux return it to tht

With all this money Cbn is pumping week in , week out interbank fx rates is still at 305 , atleast with all this injections it should av been about 280 or there about ..