CBN to pump more dollars into forex market

Mar 12 2017 - 9:47pm

CBN head office in Abuja

The Central Bank of Nigeria will inject more dollars into foreign exchange market early this week to further boost liquidity in the interbank forex market.

 Even though the Bureau de Change and parallel market segments have also benefitted from the recent interventions, the next action of the apex bank is sending jitters to currency speculators who hitherto took advantage of the scarcity of foreign exchange in the recent past.

 Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor who confirmed that more forex will be injected into the market early in the week  said that bank was determined to sustain the provision of liquidity in the foreign exchange market in order to enhance accessibility and affordability for genuine end users.

 Okorafor also cautioned dealers in foreign exchange not to engage in any unwholesome practice that is detrimental to smooth operations in the market, warning that the CBN would impose heavy sanctions on any organization or official involved in such act.

 As at last week, the CBN had intervened in the interbank FOREX market by offering over $1.2 billion for both wholesale and retail interventions.

 The CBN had offered the sum of 100 million dollars as wholesale interventions and sold about 70 million to meet requests for business and personal travel allowances.

The move was in a bid to sustain the tempo of foreign exchange supply to the interbank market and ensure liquidity.

It was also to enable more people to overcome the difficulty of obtaining forex for their transactions.

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