The Central Bank of Nigeria, CBN,has unveiled plans to release an additional $350m into the foreign exchange market.
This development is a continued effort by the apex bank to strengthen the value of the Naira, according to industry sources.
This will bring the total to $570million last week alone to further crash the value of the Dollar. However, the development is believed to have triggered panic in the foreign exchange market.
Already there is heightened fears among traders and other market participants who are yet to recover from the losses of the last two weeks owing to sharp and sudden appreciation of the Naira, Worldstage reports.
Acting Director, Corporate communications, Isaac Okorafor, confirmed this development, reiterated that with improving reserve levels, the Bank was determined to continuously make forex available to all genuine customers through their banks, advising those hoarding the greenback to reduce their losses by selling their dollar stock.
Market watchers believed that there is the likelihood of a liquidity glut as banks are beginning to send out salespeople to scout for customers to buy off their dollars in an effort to avoid losses arising from the expected further appreciation of the naira.
The CBN has in the last one week supplied a total of $570m to the market made up of $80m for PTA, Medical fees and school fees, $100m in wholesale forwards, while another $350m is planned for injection this weekend.
