Naira Appreciates As CBN Injects $297 million

The naira, yesterday, further appreciated in the parallel market even as the Central Bank of Nigeria (CBN) injected $297 million into the Interbank Foreign Exchange Market.

Vanguard survey revealed that the parallel market exchange rate dropped yesterday to N365 per dollar from N366 per dollar on Wednesday. This translates to N1 appreciation for the naira. Thus the naira has appreciated by N5 against in the parallel market this week.

The naira, however, fell by 67 Kobos in the Investors and Exporters (I&E) window as the indicative exchange rate rose to N359.67 per dollar, yesterday, from N359 per dollar on Wednesday. The volume of dollars traded also dropped marginally to $81.82 million from $83.76 million on Wednesday.

Meanwhile, the CBN injected $297 million into the Retail Secondary Market Intervention Sales (SMIS) segment of the foreign exchange market, raising the total intervention for the week to the sum of $547 million. Confirming the intervention, the Acting Director for Corporate Communications Department, Mr. Isaac Okorafor, disclosed that the Apex Bank was resolute in its determination to intervene in the forex market with the aim of uplifting the naira exchange rate, boost liquidity in the forex market, and ensure timely execution and settlement for eligible transactions.

He also expressed confidence that the interventions will continue to guarantee stability in the market and ensure availability to individuals and business concerns with genuine demand for forex transactions.

It will be recalled that on Monday, August 28, 2017, the CBN intervened in the Inter-Bank Foreign Exchange Market to the tune of $195 million in three segments of the market. In the wholesale segment of the Interbank Foreign Exchange Market, it sold $100 million and also uplifted the Small and Medium Enterprises (SMEs) and invisible segments, with the sum of $50 million and $45 million respectively.