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CBN Fortifies Forex Market with $255m

By Modupe Gbadeyanka

On Monday, the Central Bank of Nigeria (CBN) piled the foreign exchange forex market with an additional $255 million as intervention.

An analysis of how the money was disbursed showed the wholesale segment getting $100 million for both spots and forwards, while the invisibles segment, which covers BTA, school and medical fees, receiving $50 million.

Also, the Small and Medium Scale Enterprises (SME) segment of the market was allotted $55 million.

All these efforts are geared towards easing pressure on the Naira, which is currently traded at N381 to the Dollar at the parallel market.

Spokesman of the CBN, Mr Isaac Okorafor, noted that the Investors and Exporters segment of the market had so far recorded a trade volume of $1.1 billion from both the CBN and autonomous windows.

He pointed out that the feat was an indication of the appreciable level of confidence in the foreign exchange management by foreign investors and autonomous suppliers of foreign exchange to the market.

The apex bank said it was working tirelessly to reduce the wide gap between the official exchange rate and the black market exchange rate.

Early this year, on a radio programme monitored by Business Post, Mr Okorafor pointed out that the CBN was making efforts to bring the parallel market rate to N305 per Dollar.

It is believed that the consistent intervention of the banking industry watchdog has marginally helped to stabilise the Naira against the greenback and deepen Dollar inflow into the market.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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