By Victor Ernest
The Central Bank of Nigeria (CBN) on Tuesday injected $482.6 million into the inter-bank market in the first trading day after the Democracy Day commemoration.
Acting Director, Corporate Communications, Isaac Okorafor, explained in a statement issued in Abuja that the intervention was part of measures to protect the international value of the naira.
The breakdown of the intervention, according to the statement, indicates that the retail Secondary Market Intervention Sales (SMIS) was allocated $285.7 million, while the $100 million was offered in the Wholesale SMIS auction window.
The Small and Medium Enterprises (SMEs) window got an allocation of $52 million, while the invisibles segment, comprising Basic Travel Allowance (BTA), Personal Travel Allowance (PTA), medicals and tuition fees, among others was allocated $45 million.
In the statement, Okorafor explained that the interventions were follow up to the CBN Governor, Godwin Emefiele briefing on May 23 at the Monetary Policy Committee (MPC) meeting in Abuja.
Expressing pleasure that the intervention of the bank had ensured stability across all segments of the Foreign Exchange market, Okorafor expressed optimism that the bank’s objective of exchange rate convergence would be achieved soon.
According to him, surveys in Abuja, Lagos, Kano and Port-Harcourt on Tuesday indicated that the dollar traded to the Naira at an average rate of N375 to one dollar.