Despite anxiety over money market volatility, the Naira exchanged for 280 to a dollar at the opening of the Central Bank of Nigeria, CBN’s Flexible Exchange Rate regime on Monday, June 20.
The rate, which was the outcome of the interplay of demand and supply forces, depressed the value of the naira by about 29 per cent from its previous level of N197/$ when the apex bank pursued a defensive policy in its foreign exchange management.
CBN spokesman Isaac Okorafor said last night that he was happy that its objectives to clear the FX demand backlog, perform its role, strictly as a market intervention participant and re-launch a functioning and efficient inter-bank market, were being met.
He said: “The CBN, in line with its desire to promote a transparent, liquid and efficient market, and in order to engender market confidence and ensure credible price formation, intervened in the market through a special Secondary Market Intervention Sales (SMIS), addressing the issue of the FX demand backlog by clearing $4.02bn through spot and forward sales.”
The regulator assured participants and the public that it was resolutely committed to making the Nigerian FX market globally competitive, credible, transparent, liquid and efficient.
