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CBN Injects $10.31 Billion To Stabilize Forex Market

NAFEX Exchange Rate Closes At N394.17/$1

The Central Bank of Nigeria, CBN, injected $10.308 billion into the foreign exchange market between January and June 2020 in order to ensure forex stability.

The apex bank in its 2020 half year report published on Wednesday said this fund was also used to cushion the effect of the huge demand for foreign exchange on the market.

This represents 21.7 percent increase in comparison with the first half of 2019 when a total of $8.47 billion was sold at the foreign exchange market.

It said, “In the first half of 2020, the CBN continued with its intervention in the inter-bank foreign exchange market to cushion demand pressures and ensure exchange rate stability. Consequently, a total of US$10,308.01 million was sold at the foreign exchange market.”

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A breakdown of the fund showed that about $5,056.55 million was sold at the Investors & Exporters window; $1,198.48 million at the inter-bank spot; $570.00 million for Small and Medium Enterprises, $312.00 million for invisibles, while forwards sales were $3,170.97 million.

The bank said it purchased a total of $2,210.63 million, which resulted in a net sale of US$8,097.37 million.

According to the CBN report, about $5,425.30 million matured at the forwards segment, while $2,504.62 million was outstanding at end-June 2020.

In comparison with the first half of 2019, a total of US$8,470.96 million was sold at the foreign exchange market.

A breakdown of this showed that $2,161.12 million was sold at the inter-bank spot, $810.00 million for SMEs, $550.70 million for invisibles, $294.59 million at the I & E window, while forwards sales were US$4,654.55 million.

The bank said it purchased US$9,552.28 million, which resulted in a net sale of US$1,081.31 million.

According to CBN, the sum of $4,979.48 million matured at the forwards segment, while $2,552.01 million was outstanding at end-June 2019.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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