Recession: Again, CBN pumps in $100m into forex market

The Central Bank of Nigeria (CBN) has another sum of $100 million into the inter-bank foreign exchange market.

The CBN Acting Director of Corporate Communications, Mr. Isaac Okorafor, who confirmed this to journalists in Abuja, said that the move was aimed 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.

This latest injection by the apex bank brings the amount so far pumped into the interbank forex market within the last two weeks to $1.138 billion for both forwards and invisibles.

Market analysts have observed that the CBN action will further compound the problems of currency speculators who are yet to recover from the sudden appreciation of the Naira.

In the words of former economic adviser to the President and Minister, National Planning Commission, Prof 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”

Analysts have also commended the efforts of the CBN in ensuring the continuous appreciation of the Naira. This, they aver, is the outcome of sound policy and effective communication strategy, which has witnessed increased dollar supply to the market.

The CBN, in February 2017, changed its forex supply rule 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.