To make the foreign exchange (forex) market awash with liquidity, the Central Bank of Nigeria (CBN) on Tuesday has concluded arrangement to pump another $195 million into the market.
According to its acting Director, Corporate Communications, Isaac the apex bank has acted promptly and proactively in line with its promise to keep the market liquid enough to meet the needs of genuine requests.
A breakdown of the amount shows that it comprises $150 million for the wholesale auction and $45 million for medical fees, tuition fees, Personal Travel Allowance (PTA) and Business Travel Allowance (BTA).
Okorafor pointed out that deposit money banks (DMBs) are now becoming more saturated with forex as most of them can now meet demands for foreign exchange within the stipulated time frame. ìAs you can see, all the pent-up demand for invisibles have been met to the extent that banks are urging customers to come and obtain forexî, he said.
Meanwhile, the Naira on Tuesday sustained its gain against the dollar at the forex market as it exchanged at N455 (buying rate), N457 (selling rate) at the parallel market, from the N455/460 it traded on Monday, while the Pound Sterling and the Euro closed at N547 and N480, respectively.
At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro traded at N547 and N480, respectively.
At the interbank window, the Naira closed at N306.25 to a dollar. Traders at the market were hopeful that improved liquidity at the interbank market would lead to a fuller recovery of the Naira.