The Central Bank of Nigeria, CBN has pumped a total $380million within two days into the Foreign Exchange Market causing the naira to further strengthen against the dollar.
The apex bank first released $280m on Tuesday and on Wednesday, the bank offered an additional $100 million to authorised dealers to meet the 7 to 15-day forwards requests of customers.
The inability of the authorised dealers to fully subscribe to the CBN has been attributed to a surfeit of forex in the system, which may lead to further appreciation of the naira.
According to Okoroafor, the trend has made it possible for deposit money banks to meet the forex demands of their customers within the time frame stipulated by the CBN. He revealed that the CBN will continue its sale of 20,000 dollars to Bureaux de Change (BDCs) for onward sale to small-end users.
Okorafor said the impact on the Bank’s forex new window for Small and Medium Enterprises (SMEs) in the country showed that majority of small importers were heading for a major boost in their activities. He attributed this for the current appreciation of the Naira, emphasizing that the Naira will continue to gain strength with the relentless efforts of the CBN to to supply the market with forex.
The Naira on Wednesday closed at N390 at the parallel market and N306 to a dollar at the interbank market.