Naira Records Gain Against Dollar
The Naira made a rebound on Monday when it closed at a rate of 366 per United States Dollar in the foreign exchange market.
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The local unit, which opened last week at a rate of 369 per dollar had also made a gain as it closed on Friday at 367 per dollar.
The naira had previously suffered a reduction in value two weeks ago when it traded at 369 per dollar for a number of days.
The Central Bank has been injecting between $250m and $300m into the various segments of the inter-bank foreign exchange market in recent times, so much that experts began to decry that the CBN had taken up the function of a mere piggy bank catering chiefly to offsetting deficits incured due to the devaluation of the naira in the money market.
Meanwhile, the Central Bank on Monday pumped in another $195m into the three segments of the foreign exchange market.
In the wholesale Secondary Market Intervention Sales of the Inter-bank foreign exchange market, the CBN auctioned a total of $ 100m and also intervened in the small and medium Enterprises and invisible segments with the sum of $45m respectively.
The Central Bank’s intervention has proven quite significant, having come through in the middle of the Monetary Policy Committee Meeting taking place on Monday and Tuesday.
As reported last week, the CBN had made sales of up to $545 as the retail Secondary Market Intervention Sales received the largest intervention of $285m.
Other segments include the $100m offered for wholesale SMIs, $90m for thr Small and Medium Enterprises window and $70m for invisibles such as Basic Travel Allowances tuition fees and medical payments.
The Central Bank had also made threats tom sanction any Deposit Money Bank in breach of its earlier directive of March 3, 2017, which instructed them to, among other things, open teller points for retail forex trading transactions and to maintain electronic boards in all their branches, so that the rates of all trading currencies could be shown to their customers in order to foster the proper information of the masses about the state of foreign exchange rates.