CBN to sustain foreign exchange liquidity

The Central Bank of Nigeria has reiterated its decision to sustain the supply of foreign exchange in order to ensure liquidity in the market and enable genuine users access and affordability.

Mr. Isaac Okorafor, acting director, Corporate Communications of the CBN, said in a statement on Sunday that the apex bank wants to disabuse the notion by speculators that it would not be able to sustain the forex intervention.

Mr. Okorafor said that the CBN would inject more forex into the market early this week in order to further weaken the dollar.

“This is in addition to the further increase in the sale of dollars to the Bureau de change operators from 8,000 dollars to 10,000 dollars per week,’’ he said

Okorafor also advised commercial banks and other dealers to desist from actions that would undermine efforts at making life easier for forex end users.

Okorafor said that the CBN had received complaints from customers who had difficulty in getting foreign exchange for genuine needs like tuition, medicals, and BTA.

The CBN, however, advised the general public to report any banks that seemed to frustrate customers’ needs for forex after proper documentation.

Naira strengthens against dollar, trades at N380/$1

The Naira closed the week stronger on Friday at the parallel market, as it consolidated its position against the US dollar.

The Naira was traded at N380 to $1 on Friday afternoon, with prices hovering between N380 (buying rate) and N390 (selling rate) – which was an improvement in comparison to the N400 it traded the previous day.

The pound sterling and Euro closed the week on Friday at N490 and N430 respectively.

Bureau De Change rates had the Naira at N399 to $1, while pound sterling and the Euro exchanged for N500 and N400.

At the interbank market, the Naira also made gains, closing at N307 in comparison to N308 on Thursday.

Alhaji Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria, said that the liquidity boost by the Central Bank of Nigeria at the interbank market plunged prices down, noting that BDC operators licensed by the apex bank are expected to incur about N130 million in regulatory losses as a result.