The Central Bank of Nigeria on Monday injected another $210m into various segments of the inter-bank foreign exchange market.
This came on the heels of the regulator’s $304.4m Retail Secondary Market Intervention sales in the inter-bank forex market on Friday.
Despite this, the naira closed at 364/dollar at the parallel market on Monday, the same rate the United States greenback traded against the local unit on Friday.

At Monday’s trading, the CBN offered the sum of $100m as wholesale interventions and allocated the sum of $55m to the Small and Medium Enterprises forex window.

Customers requiring forex for Business/Personal Travel Allowances, tuition and medical fees, among others, equally got an allocation of $55m.
The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, confirmed the sales, reiterating that the bank would sustain its interventions in the foreign exchange market.

He expressed optimism that the value of the naira would continue to spike in the face of accretion to the foreign reserves and the attendant reduction in the country’s import bill.

While also attributing the stability in the market to the bank’s transparency and cooperation of authorised dealers, he urged all dealers to continue to play by the rule, as the CBN would not hesitate to sanction any erring bank or dealer.

Friday’s sales were in favour of interests in the agricultural, airlines, petroleum products, raw materials and machinery sectors.
Meanwhile, the naira is expected to edge up this week due to tepid dollar demand.

Foreign exchange traders said the naira could firm to 359, as exports fuelled by rising oil prices pick up and offshore investors chase local assets in search of yields, Reuters reported.

On the official market, the naira was quoted at 305.60, supported by the CBN’s regular intervention.
Vice-President Yemi Osinbajo had last Thursday said that a weaker US dollar did not necessarily hurt Nigeria as an oil-producing nation.

Sourec:- http://www.lekkigists.com.ng/2018/01/cbn-sells-210m-as-naira-closes-at.html

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