CBN Injects $210 Million Into Foreign Exchange Market
Nigeria’s foreign exchange market is relatively stable now, thanks to sustained intervention by Nigeria’s central bank.
On Wednesday, the apex bank continued its intervention by injecting $210 million into the inter-bank foreign exchange market, as it seeks to increase the amount of foreign exchange in the market and alleviate dollar shortages.
The bank said in a statement it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.
Meanwhile, the CBN has given reasons why Nigeria’s dollar reserves have been going down.
The external reserves currently stand at $44 billion.
Speaking during the CBN Day at the ongoing Abuja International Trade Fair in Abuja on Wednesday, the Director, Corporate Communications at the apex bank, Isaac Okorafor, explained that the external reserves had been going down recently because of higher yields in the United States.
Okorafor, however, gave an assurance that at the current level, the external reserves were sufficient to take care of the nation’s import bill for 17 to 20 months, much more than the three-month standard recommendation.
According to him, some foreign investors who had gone to emerging markets to take advantage of the high yields, have had to go back to the United States because of better opportunities there at the moment, adding that Nigeria’s situation was not peculiar.
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