collected by :kiven Dixter
Also, a source in Guaranty Trust Bank commended the decision of the CBN to flood the market with forex, thereby allowing the banks to meet legitimate demands from its customers.
He explained that doing so would force the CBN to reduce the quantity of forex it sold to banks.
The source said that the bank wanted to avoid a situation where it was forced to return excess forex to the CBN.
In a data released by the CBN, the apex bank, within three weeks, injected more than 1.4 billion dollars for both wholesale and retail intervention into the interbank Forex market.
“We have more than enough foreign exchange to meet the request of our customers for school fees and others,” NAN was told.
as declared in
Why forex reserves keep rising despite $1.645bn CBN interventions
This week, CBN supplied $25 million to the BDCs prompting the parallel market exchange rate to reverse to N455, a N10 gain.
Consequently, the external reserves began a steady depletion trend from US$31.8 billion mid-2015, hitting the lowest point of US$23.9 billion on the 19th October 2016.
The CBN has been in a battle to save the local currency from speculative attacks since 2015, at the backdrop of worsened foreign exchange inflow orchestrated by the sharp drop in the oil prices, Nigeria’s major foreign exchange earner.
It will be recalled that the CBN, in February 2017, changed its forex rule to guarantee supply to both small and the big end-users.
Consequently, the forex policy strategy was elevated two weeks ago, to counter-speculation and grip on parallel market rate.
as declared in
CBN to inject more funds to ensure liquidity in interbank forex market ▷ NAIJ.COM
There are strong indications that the Central Bank of Nigeria (CBN) is unrelenting in its move to ensure liquidity in the interbank foreign exchange (Forex) market, as it will inject more funds into market this week.
The CBN had, as at last week, injected over 1.4 billion dollars into the interbank Forex market for both wholesale and retail interventions.
Confirming the proposed additional foreign exchange injection into the system, the acting Director, Corporate Communications of the CBN, Mr Isaac Okorafor said the CBN was determined to sustain the provision of liquidity in the Forex market.
This is according to information gathered by the News Agency of Nigeria (NAN) on Sunday in Abuja from market operators.
He also warned that the CBN would impose heavy sanctions on any organisation involved in such acts.