The Naira is set to be given further lift in the foreign exchange market with the Central Bank of Nigeria’s (CBN) injection of another $418 million into various segments of the inter-bank Foreign Exchange market on Tuesday. This is coming on the heels of a cumulative $2.2 billion boost in the transactions at the Investors’ and Exporters’ (I&E) segment of the market.

Figures obtained from the CBN on Tuesday indicated that the retail segment of the market received the highest intervention of $226 million, followed by the wholesale window that received an allocation of $100 million. The Small and Medium Enterprises (SMEs) window received a boost of $50 million, while the invisibles segment, comprising Business/Personal Travel Allowances, school tuition, medicals, among others, was allocated $42 million to meet the demands of customers.

Confirming the figures, the Bank’s spokesman, Isaac Okoroafor also disclosed that the volume of currency trading in the Investors’ & Exporters’ (I&E) FX Window had cumulatively hit heights of $2.2 billion since the CBN introduced it on Friday, April 21, 2017 to boost liquidity in the foreign exchange market and ensure timely execution and settlement for eligible transactions.

Okoroafor expressed confidence that the interventions will continue to guarantee stability in the market and ensure availability to individuals and business concerns.

On Monday, CBN injected $413.5 million into the inter-bank market in its unrelenting bid to guarantee liquidity in the market as well as shore up the international value of the Naira.

A breakdown of Monday’s figures shows that the apex bank offered $100 million to authorised dealers in the wholesale window, while the Small and Medium Enterprises (SMEs) window was allocated $28 million. The invisibles segment had $25.5 million to meet the needs of customers in that sector.

Analysts see the increase in the volume of transactions in the I&E segment as a positive sign of the return of confidence in the financial markets as clearly demonstrated by the activities in the stock market.

According to them, the sentiments of investors had strengthened since the CBN established the I&E FX window in April, which they agreed had ensured greater flexibility in foreign exchange rate determination. They, however, urged the CBN to continue its march towards the convergence of rates.

Meanwhile, the naira remained stable with a high possibility of further strengthening in the foreign exchange market on Tuesday, selling at an average of N363/$1 in the BDC segment of the market.

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