CBN Injects $303 Million, 46.58 Million Chinese Yuan Into Forex Market
It’s all about making sure that the naira doesn’t go south again.
On Friday, the Central Bank of Nigeria, CBN injected a combination of dollar and Chinese yuan into the foreign exchange market.
The apex bank specifically injected the sum of $303.91 million into the interbank segment of the foreign exchange market.
The CBN said in a statement that it also sold 46.58 million Chinese Yuan in the spot and short-tenored forwards.
Meanwhile, the bank also said that the US dollar-denominated interventions were only for concerns in the agricultural and raw materials sectors.
The Director, Corporate Communications, CBN, Isaac Okorafor, said the exercise, which was in tune with the CBN guidelines, was for the payment of renminbi-denominated Letters of Credit for agriculture as well as raw materials.
He added that the sales in the Chinese yuan were through a combination of spot and short-tenored forwards, arising from bids received from authorised dealers.
While noting that the availability of renminbi was sure to ease pressure on the Nigerian foreign exchange market, Okorafor attributed the relative stability in the forex market to the intervention of the CBN as well as the sustained increase in crude oil prices in the international market.
He said the CBN would remain committed to ensuring that all the sectors continue to enjoy access to the needed foreign exchange.
The bank on Tuesday intervened to the tune of $210 million to cater for requests in the wholesale segment of the forex market.
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