In furtherance of its efforts at boosting liquidity at the foreign exchange market, the Central Bank of Nigeria has pumped $280 million into the interbank market to meet forward, spot and invisibles demand even as the naira started out gaining at the parallel market.
Having sold at N410 for most of last week on the streets, the naira closed stronger yesterday selling at N408 to the dollar, while it sold at N306 at the interbank market.
The injection of $280 million by the CBN into the interbank market is asides the weekly $20,000 auction for bureau de change operators.
A breakdown of the intervention shows that invisibles such as Basic Travel Allowance, Personal Travel Allowance, medical bills and tuition received $80 million, while the Small and Medium Enterprises, SMEs, window received $100 million.
CBN director, Corporate Communications, Isaac Okorafor, who confirmed the releases, disclosed that the new window for SMEs would no doubt boost the business of SMEs through the importation of eligible finished and semi-finished items, thereby boosting forex supply to the retail business segment of the market.
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