Naira slide rattles CBN, as it pumps in more dollars into forex market

Apparently disturbed by a slight loss in the value of the naira, the Central Bank of Nigeria (CBN) has decided to further increase its volume of dollar supplies to the interbank market by 20 per cent.

As at Monday, the apex bank pumped in $240 million into the forex market, compared with the sum of $200 million last week.

The CBN was rattled on Friday as it witnessed a slide in the value of the naira from N360 per dollar, to $385 the previous week, despite its persistent supply of the hard currency to the market.

A statement from the apex bank, said $90 million will now be deployed to meet genuine demands for invisibles such as Business Travel Allowances /Personal Travel Allowances, medicals and tuition fees.

The statement also said that a total of $150 million will be offered to authorised forex dealers in the interbank’s wholesale auction window.

Its spokesman, Isaac Okorafor, said the CBN had adjusted Bureau De Change (BDC) sale days to Tuesdays to reduce logistical difficulties.

He added that henceforth the CBN would sell $10,000 only to low-end forex dealers once a week.

Okoroafor further stated that in a bid to further ease the access of customers, the CBN has also directed all banks to pay cash over the counter to desiring foreign exchange customers.

While urging the banks to oblige genuine requests of customers, he advised customers to report any un-cooperating bank to the CBN through available platforms.

But it could be recalled that many experts, including an academic, Dr. Solomon Eze money, have insisted that the CBN pumping of dollars periodically through the market would not solve the challenges that the Nigerian economy is facing.

However, CBN in the recent months has continued to make offers and releases to the inter-bank foreign exchange market in its bid to sustain forex rule supply to different categories of users.

It has in the recent months made offers and releases of over 2 billion dollars to the inter-bank foreign exchange market in its bid to sustain Forex supply to different categories of users.

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