For the third time running within two weeks, the Central Bank of Nigeria (CBN) has injected another sum of $100 Million into the inter-bank foreign exchange market.
According to the Bank’s Acting Director, Corporate Communications, Isaac Okorafor, who confirmed this to newsmen in Abuja today, Tuesday, the additional Dollars were meant to fund the commercial banks with enough forex to cater for the request of customers to meet personal travelling allowance (PTA), basic travelling allowance (BTA), medicals and tuition fees.
He confirmed that the amount so far pumped into the interbank forex market within the last two weeks is $1,138m for both forwards and invisibles.
Commending the move, market some analysts saw the CBN’s Dollar rain for the commercial banks as an onslaught on currency speculators who are yet to recover from the sudden appreciation of the Naira. According to the former economic adviser to the President and Minister of the National Planning Commission, Professor Ode Ojowu: “it appears this time around, the CBN has decided to become smarter than the market manipulators, by putting on its cap of authority to look beneath the market forces.”
It will be recalled that the CBN, in February 2017, changed its forex rule supply to guarantee supply to both small and the big end-users. The policy has restored stability and bolstered market confidence which has ultimately boosted the value of the Naira.
Analysts have also commended the efforts of the CBN in ensuring the continuous appreciation of the naira.
This they attributed to good policy and effective communication strategy, which has witnessed increased dollar supply to the market. [myad]
