CBN Injects Additional $170m In Interbank Market

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By Andah John

The Central Bank of Nigeria (CBN) on Thursday night announced the injection of additional $170m in the interbank market.

In a statement, the apex bank said while the sum of $100m was offered as wholesale interventions, the sum of $70m was released to meet the requests for Business and Personal Travel Allowances.

According to the CBN, the latest intervention brings the total amount so far released into the interbank forex to about $1.35bn.

Acting Director, Corporate Communications Department CBN, who confirmed the release, said  the CBN remained firm in ensuring that it supplies enough forex to genuine customers of Deposit Money Banks and increase liquidity in the market.

“The uniqueness of the Wholesale Forwards was that banks are allowed to use their winnings from auctions to fund matured obligations to meet Letters of Credit remittances, extinguish bills for collection and other forex demands.

“With this development, importers who had hitherto been using bills for collection will now experience relief instead of having to patronize other more expensive sources.

“Thursday’s injection by the CBN takes the amount so far offered in the interbank forex market within the past few weeks to over $1.2bn for both wholesale and retail interventions.”

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