CBN Injects $331.41 Million Into Currency Market
The naira recently came under pressure due to high demand for foreign currency.
Nigeria’s central bank is trying to end the bleeding by injecting more foreign exchange into the market.
Despite a 210-million-dollar intervention a week earlier, the apex on Friday injected $331.41 million into the interbank foreign exchange market.
The bank said the funds were allocated to companies in the agricultural, airline, petroleum and machinery sectors.
The CBN is “buoyant enough to meet the foreign exchange requests of various customers cut across the different segments of the market”, said its spokesman Isaac Okorafor.
The consistent intervention will ensure there is no dollar shortage in the market.
Recall that Nigeria fell into recession in 2016 largely due to low crude prices which led to lower oil revenues and consequently to foreign currency shortages.
It is a fact that crude sales are the country’s main source of foreign exchange.
It emerged from recession last year as crude prices recovered, but the CBN has maintained a system of multiple exchange rates in an attempt to reduce pressure on the naira.
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