CBN Injects Fresh $210m Into Forex Market

The apex bank of Nigeria has moved to improve the value of the naira by pumping more foreign exchange into the financial market.

The Central Bank of Nigeria on Tuesday injected $210m into the interbank foreign exchange market.

The CBN said in a statement on Tuesday that it was extending efforts to boost liquidity and alleviate dollar shortages.

According to the statement, from the released amount, $100m was earmarked for the wholesale market, $55m for Small and Medium Enterprises forex window, $55m for customers requiring forex for business/personal travel allowances, tuition and medical fees, among others.

The Acting Director, Corporate Communications, CBN, Mr Isaac Okorafor, said the bank was pleased at the performance of the naira, noting that the currency had continued to enjoy stability against the dollar and other major currencies of the world in recent times.

He said the bank would continue to intervene in the interbank forex market in line with its resolve to ensure liquidity in the market and maintain stability.

Okorafor reiterated that the steps taken by the CBN in forex management had resulted in further reduction in the country’s import bills and addition to its foreign reserves.

He added that on Wednesday, the CBN would sensitise stakeholders in Abuja and the adjoining states on the Bilateral Currency Swap Agreement between the CBN and the People’s Bank of China which was signed on April 27, 2018.

As of Tuesday, August 14, 2018, the naira exchanged for N360/$1 in the Bureau de Change segment of the market, but it depreciated to N306.05/$1 at the official rate from N306/$1.

Meanwhile, the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending said it disbursed $373m to farmers in the past year to help boost production of export crops.

The Managing Director, NIRSAL, Aliyu Abdulhameed, was quoted by Bloomberg as saying that the credit beneficiaries were mainly small-holder farmers growing cotton, rice, oil palm, cassava and corn

According to him, since the establishment of NIRSAL in 2012, it has been working closely with banks to guarantee as much as 75 per cent of loans to agriculture.

He said at an average yield of four tonnes per hectare, optimised small-holder farmers’ production would generate a gross output of about 16 million tonnes.

Abdulhameed added that revenue from the exports was expected to reach N1.6tn ($4.4bn) by the end of this year.