CBN Resumes Intervention With $418m Injection

The Central Bank of Nigeria (CBN) led by Mr. Godwin Emefiele has continued the prolonged battle to save the Naira with a fresh injection of $418million. With that development, the exchange rate at the parallel market stabilised at N367 to the dollar on Tuesday June 13, 2017, as the Central Bank of Nigeria (CBN) again injected $418m into foreign exchange market. The intervention, which cut across various segments of the inter-bank forex market, was aimed at pushing for the convergence of various market rates and resumption of support for the embattled Naira.

The bank’s spokesperson, Mr. Isaac Okorafor, while confirming the development said the volume of currency trading in the Investors and Exporters window had cumulatively hit $2.2b since the CBN introduced it in April to boost liquidity in the forex market and ensure timely settlement of eligible transactions. He expressed confidence that the interventions would continue to guarantee stability in the market and ensure availability to individuals and business concerns. The CBN had on Monday, injected $413.5m into the inter-bank market in its bid to guarantee liquidity in the market, as well as shore up the value of the Naira.

Financial experts have argued that the increase in the volume of transactions in the Investors’ and Exporters segment remains a positive sign of increasing confidence in the financial market, which has also manifested in stock market activities.

In another development, Nigeria would be issuing its first sovereign Islamic Bond known as Sukuk worth N100b in the next two weeks. gathered that arrangements have reached advanced stage for the debut of a $300m Diaspora Bond, with roadshows in Britain during week. This will be extended to Switzerland and the United States of America. The Debt Management Office (DMO), said its proceeds will be used to fund road projects. The Islamic bond is being scripted as seven-year tenor and would be traded on the Nigerian Stock Exchange (NSE) and over-the-counter platform of the FMDQ Securities.

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