The CBN has spent $11.3 billion to intervene in the interbank foreign exchange market this year.
This comprise of weekly injection of $210 million in the interbank market with $100 million allocated to the wholesale segment, $55 million to SME window and $55 million to meet demand for invisibles such as Personal Travel Allowance (PTA), Business Travel Allowance, Medical bills, School fees.
In addition to this, the apex bank occasionally conducts special Secondary Market Intervention Sales (SMIS). Disclosing this in their review of CBN intervention in the foreign exchange market, analysts at Zedcrest Capital said: “The CBN interventions were in favour of the agricultural, airlines, petroleum products and raw materials and machinery sectors. Also, invisibles such as tuition fees, medical payments and Basic Travel Allowance (BTA), among others got CBN interventions. The bank has injected a total of $24.4 billion into the interbank segment of the forex market since it commenced its intervention in February 2017.”
Meanwhile the naira recorded mixed performance in the foreign exchange market last week.
While the naira appreciated in the Investors & Exporters (I&E) window, it depreciated in the parallel market.
According to naijabdcs.com, the live exchange rate platform of the Association of Bureaux De Change Operators of Nigeria (ABCON), the parallel market exchange rate rose to N363 per dollar last week from N362.5 per dollar the previous week, indicating 50 kobo depreciation for the naira.
The naira appreciated by 69 kobo in the I&E window as the indicative exchange rate dropped to N364.54 per dollar last week from N365.23 per dollar the previous week.
