The Central Bank of Nigeria, CBN, on Tuesday, March 7, injected an additional sum of $100m into the interbank foreign exchange market.
The apex bank’s Acting Director, Corporate Communications, Isaac Okorafor said in Abuja that the move was 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 fresh injection by the apex bank brings the amount so far pumped into the interbank forex market within the last two weeks to $1.138b for both forwards and invisibles.
The move is expected to further create problems for currency speculators who are yet to recover from the sudden appreciation of the Naira.
According to the former economic adviser to the President and Minister, National Planning Commission, Professor Ode Ojowu was quoted as saying, “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.”
The CBN, in February 2017, changed its forex rule supply 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.
Analysts have also commended the efforts of the CBN in ensuring the continuous appreciation of the naira. This they attributed to good policy and effective communication strategy, which has witnessed increased dollar supply to the market.