CBN Patches Up The Economy With Fresh Cash Injections

By Ikenga Chronicles December 4, 2018

CBN Patches Up The Economy With Fresh Cash Injections

In further attempts to save the naira from collapsing as well as ensuring its stability, the Central Bank of Nigeria(CBN) has again injected a total of $331.22 million in the retail Secondary market, in addition to CNY51.86 million in the spot and short-tenored forwards segment.

The figures released by the bank on Friday revealed that the US dollar-denominated interventions were for requests in the agricultural and raw materials sectors while the Yuan was for Renmnbi denominated Letters of Credit.

CBN’s Director, Corporate Communications Department, Mr. Isaac Okorafor, in a statement reiterated that the Bilateral Currency Swap Agreement (BCSA) with the Peoples’ Bank of China was achieving its major objectives of reducing the use and influence of third currency transactions; reducing the pressure on the naira exchange rate; easing trade transactions between Nigeria and China and maintaining financial market stability in Nigeria.

Mr. Okorafor further assured that the CBN would remain committed to ensuring that all the sectors of the foreign exchange market continue to enjoy access to the needed foreign exchange by Nigerians.

It will be recalled that the bank on Tuesday, November 27, 2018 intervened in the inter-bank Foreign Exchange Market to the tune of $210 million.

Meanwhile, $1 exchanged for N369 at the Bureau de Change (BDC) segment of the foreign exchange market, while CNY1 exchanged for N53.