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Central Bank Injects $210 Million Into Currency Market - Business - Nairaland

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Central Bank Injects $210 Million Into Currency Market by phosky(m): 4:36am On Feb 13
CENTRAL BANK INJECTS $210 MILLION INTO CURRENCY MARKET
source: http://www.eyesoflagos.com/2018/02/central-bank-injects-210-million-into.html

Nigeria’s central bank said on Monday it had injected $210 million into the interbank foreign exchange market, part of an effort to improve liquidity and alleviate the dollar shortages of the past few years.
Eyes Of Lagos gathered that, The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.
“The bank will continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability,” the central bank said in an emailed statement.
Nigeria, Africa’s largest oil producer, fell into recession in 2016 largely because of low crude oil prices. Lower oil revenues led to dollar shortages, since crude sales are the country’s main source of dollars.
Africa’s largest economy emerged from recession in the second quarter of last year as crude prices recovered and militant attacks against Niger Delta oil production facilities ended.
Successful debt sales, including multiple Eurobond offerings last year, have helped Nigeria to accrue billions of dollars in foreign reserves.

Re: Central Bank Injects $210 Million Into Currency Market by debolayinka(m): 5:17am On Feb 13
Nice one! Let's hope it helps reduce exchange rate soon.
Re: Central Bank Injects $210 Million Into Currency Market by lovingyouhun: 7:39am On Feb 13
Hope we will not hear stories later? When will they start injecting profits to this Economy? Borrow borrow evrryday..........

4 Likes

Re: Central Bank Injects $210 Million Into Currency Market by Hahnemann: 7:39am On Feb 13
How will it benefit an average Nigerian on the street

4 Likes

Re: Central Bank Injects $210 Million Into Currency Market by geostrata(m): 7:39am On Feb 13
Good news...just hope anoda mysterious snake no go con swallow dis money too
Re: Central Bank Injects $210 Million Into Currency Market by lastempero: 7:40am On Feb 13
I don't understand how the mechanism of Nigerian economics works,considering the fact that oil price has been going up for sometime now but it is yet to reflect on our exchange rate,had it been the reverse was the case we would have seen the rise in exchange rate.everything here is scam shocked

12 Likes

Re: Central Bank Injects $210 Million Into Currency Market by NaijaMutant(f): 7:40am On Feb 13
They have started to pump the campaign dollars grin


Which kind yeye market

2 Likes

Re: Central Bank Injects $210 Million Into Currency Market by showreals(m): 7:41am On Feb 13
Lol, but banks still selling USD on their Naira Master at NGN378 to $1, try and monitor the banks and make them have a ceiling on their FX delas, well that is if you guys are not in it together to rip Nigerians off
Re: Central Bank Injects $210 Million Into Currency Market by Nobody: 7:43am On Feb 13
Confused government

3 Likes

Re: Central Bank Injects $210 Million Into Currency Market by AishaBuhari: 7:44am On Feb 13
Broad day light thievery... Who's deceiving who angry

2 Likes

Re: Central Bank Injects $210 Million Into Currency Market by oluseyiforjesus(m): 7:46am On Feb 13
Anything dat happen in ds bubu government now is jst campaign trick, u ve failed Nigerians, if you like use helicopter to share naira,u are landing in daura may 29 nxt yr.

4 Likes

Re: Central Bank Injects $210 Million Into Currency Market by blackpanda: 7:48am On Feb 13
lovingyouhun:
Hope we will not hear stories later? When will they start injecting profits to this Economy? Borrow borrow evrryday..........

Smh. Just be quiet ok
Re: Central Bank Injects $210 Million Into Currency Market by Nobody: 7:48am On Feb 13
phosky:
CENTRAL BANK INJECTS $210 MILLION INTO CURRENCY MARKET
source: http://www.eyesoflagos.com/2018/02/central-bank-injects-210-million-into.html

Nigeria’s central bank said on Monday it had injected $210 million into the interbank foreign exchange market, part of an effort to improve liquidity and alleviate the dollar shortages of the past few years.
Eyes Of Lagos gathered that, The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.
“The bank will continue to intervene in the interbank foreign exchange market, in line with its pledge to sustain liquidity in the market and maintain stability,” the central bank said in an emailed statement.
Nigeria, Africa’s largest oil producer, fell into recession in 2016 largely because of low crude oil prices. Lower oil revenues led to dollar shortages, since crude sales are the country’s main source of dollars.
Africa’s largest economy emerged from recession in the second quarter of last year as crude prices recovered and militant attacks against Niger Delta oil production facilities ended.
Successful debt sales, including multiple Eurobond offerings last year, have helped Nigeria to accrue billions of dollars in foreign reserves.


These are only temporary measures. It is not sustainable. They are just pumping in money so the value of the naira goes up. For how long will we continue this?

The best thing for the nation right now is for us to be exporting and not importing most of our goods. We are not exporting; rather, we continue importing, thereby putting pressure on our foreign reserves which are in dollars. It is making the demand for dollars outweigh supply.

In a situation where there is nothing to increase the demand for the local currency, the naira will continue to perform poorly against the dollar. There is no way that the CBN will continue to pump money into the market and think that it can sustain it. angry

3 Likes

Re: Central Bank Injects $210 Million Into Currency Market by Authoreety: 7:57am On Feb 13
So hau mach is a dollar

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by buffalowings: 8:00am On Feb 13
Cbn
Doing chicken economics cheesy grin grin

2 Likes

Re: Central Bank Injects $210 Million Into Currency Market by 12submarine(m): 8:03am On Feb 13
efesodje:



These are only temporary measures. It is not sustainable. They are just pumping in money so the value of the naira goes up. For how long will we continue this?

The best thing for the nation right now is for us to be exporting and not importing most of our goods. We are not exporting; rather, we continue importing, thereby putting pressure on our foreign reserves which are in dollars. It is making the demand for dollars outweigh supply.

In a situation where there is nothing to increase the demand for the local currency, the naira will continue to perform poorly against the dollar. There is no way that the CBN will continue to pump money into the market and think that it can sustain it. angry
It is not temporary. The earnings in dollars being pumped into the economy is what gives the value of the Naira. It didn't start yesterday, it has always been the case and it is done all over the world especially in import dependent countries whose currencies are not acceptable internationally. Additionally, the Nigerian government spends Naira in Nigeria for the payment of salaries, local contractors and other national finances, so even what it earns in dollars must be exchanged for the Naira through those pumpings.
Re: Central Bank Injects $210 Million Into Currency Market by Nobody: 8:04am On Feb 13
12submarine:

It is not temporary. The earnings in dollars being pumped into the economy is what gives the value of the Naira. It has always been the case and it done all over the world especially in countries whose currencies are not acceptable internationally.

Ok. If you say so smiley
Re: Central Bank Injects $210 Million Into Currency Market by EarthXmetahuman: 8:06am On Feb 13
Who cares?

Dollars is still 360

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by EarthXmetahuman: 8:08am On Feb 13
lastempero:
I don't understand how the mechanism of Nigerian economic works,considering the fact that oil price has been going up for sometime now but it is yet to reflect on our exchange rate,had it been the reverse was the case we would have seen the rise in exchange rate.everything here is scam shocked
as in ehn..

If oil price reduced to 20 dollars today, you will see naira fall to 700 against dollar immidiately while the useless government will look for someone to blame.

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by Meajor(m): 8:08am On Feb 13
Every time na inject Inject which day dem go draw? Rubbish

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by tetralogyfallot(m): 8:17am On Feb 13
Misplaced priorities. Subsidizing the dollar is never a sustainable way of improving the economy. Hike in dollar price is simply as a result of high importation of refined oil. Am still wondering why this government sees building of new and effective refinery as a rocket science. We are good in tackling the symptoms and not curing the disease.

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by MemphisRaynes: 8:22am On Feb 13
Emefiele and Kemi Adeosun will do well as Nurses or drug addicts, all they know how to do is inject. That we don't feel the injections or the effect, shows how good they are at injecting.
Re: Central Bank Injects $210 Million Into Currency Market by nelklyn(m): 8:54am On Feb 13
12submarine:

It is not temporary. The earnings in dollars being pumped into the economy is what gives the value of the Naira. It didn't start yesterday, it has always been the case and it is done all over the world especially in import dependent countries whose currencies are not acceptable internationally. Additionally, the Nigerian government spends Naira in Nigeria for the payment of salaries, local contractors and other national finances, so even what it earns in dollars must be exchanged for the Naira through those pumpings.

It's not a Long term solution, one of such lessons can be learnt from the U.K government when they had to pull out from European ERM after failing to stabilize the pound to trade at a lower limit. They eventually gave up and lost nothing less than 3 billion pounds, trying to stabilize their currency.

I believe the best solution is for Nigerian government to work on reducing its deficit trade balance by increasing its exports, it will create more demand for the Naira which will give more value to the Naira.

As it stands CBN cannot tamper with Interest rate, it will hurt the economy more and we can't attract Foreign Direct Investments either, most foreign investors fear Nigeria will enter De-Leveraging stage.
Re: Central Bank Injects $210 Million Into Currency Market by olujastro: 8:57am On Feb 13
lastempero:
I don't understand how the mechanism of Nigerian economic works,considering the fact that oil price has been going up for sometime now but it is yet to reflect on our exchange rate,had it been the reverse was the case we would have seen the rise in exchange rate.everything here is scam shocked
The naira is fixed against only the dollar because we operate a fixed currency regime since Nigeria has been existing. This is due to the fact that Nigeria is an import dependent country.
The only way the naira can rise in exchange rate is if we float the currency to be determined by market forces. But we can't in our current import driven economy as this will ruin the naira to say 1000/$.
This govt has for the first time in Nigeria committed to floating the naira by 2021 thereabouts that's why it is striving hard to work us out of importing certain items that drain our forex, especially rice, wheat, petroleum products and steel.
Re: Central Bank Injects $210 Million Into Currency Market by Bluffly: 8:58am On Feb 13
debolayinka:
Nice one! Let's hope it helps reduce exchange rate soon.
That's what all of you like. COSMETIC ECONOMY.

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by ManirBK: 9:27am On Feb 13
GOOD ONE HOPE IT WILL REDUCE INFLATION
Re: Central Bank Injects $210 Million Into Currency Market by kishimi8(m): 9:32am On Feb 13
showreals:
Lol, but banks still selling USD on their Naira Master at NGN378 to $1, try and monitor the banks and make them have a ceiling on their FX delas, well that is if you guys are not in it together to rip Nigerians off

Just used uba na 310 them charge for amazon

2 Likes

Re: Central Bank Injects $210 Million Into Currency Market by bizhop01(m): 9:43am On Feb 13
Good example is a table with three legs

1 Like

Re: Central Bank Injects $210 Million Into Currency Market by debolayinka(m): 11:24am On Feb 13
Bluffly:

That's what all of you like. COSMETIC ECONOMY.
Okay, no vex. 1 Dollar should be worth N5,000 very soon then.
Re: Central Bank Injects $210 Million Into Currency Market by deeone10: 11:54am On Feb 13
this ur injection no dey work o
Re: Central Bank Injects $210 Million Into Currency Market by Bluffly: 12:03pm On Feb 13
debolayinka:

Okay, no vex. 1 Dollar should be worth N5,000 very soon then.
Except we take charge of our lives through local production of items we will keep cosmecting the economy expecting the exchange rate to determine our future. When we have high exportation and less of imports exchange rate will drop as we will have dollar chasing our currency. Not this syringe injection that cannot last.

Here are more determining factors that are not far-fetched
Inflation Rates. Changes in market inflation cause changes in currency exchange rates. ...
Interest Rates. Changes in interest rate affect currency value and dollar exchange rate. ...
Country's Current Account / Balance of Payments. ...
Government Debt. ...
Terms of Trade. ...
Political Stability & Performance. ...
Speculation

Let us build a working economy and not a cosmetic one like we have since time immemorial

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