The Central Bank of Nigeria (CBN) is believed to have concluded plans to commence another round of forex injections into the invisibles segment of the market thereby strengthening Naira against Dollars. This is coming as the inter-bank forex market resumes tomorrow, Tuesday after the Workers’ Day holiday.
Industry experts are of the view that the rate of forex liquidity being pumped into the system by the CBN will lead to a depreciation of the dollar against the naira.
The CBN Acting Director of Corporate Communications, Isaac Okorafor, in a chat with news men at the weekend, confirmed moves by the apex Bank to inject more foreign exchange into the inter-bank segment of the market.
He said that this would be in line with the commitment of the apex bank Governor, Godwin Emefiele, to ensure that those who had legitimate need for foreign exchange are guaranteed access to it.
Okorafor said that the actions of the bank are in sync with its mandate of safeguarding the value of the local tender, stressing that CBN remained determined to achieve a convergence of the rates in the interbank and Bureau de Change segments.
With the latest policies of the CBN, which cater specifically for SMEs, exporters and importers, market analysts are of the strong view that the Naira will firm up against other major currencies when trading commences this week.
Speaking at the weekend, a frontline entrepreneur, Tony Elumelu said that global investors are excited about the forex policies of the CBN, which he said, had brought predictability to the forex market.
It will be recalled that the CBN recently issued a forex policy statement establishing special windows for Small and Medium Enterprises (SMEs) to enable SMEs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter. The Bank also established an “Investors’ & Exporters’ FX Window” aimed at encouraging foreign investors in the country’s forex market. [myad]
