Nigeria: CBN injects an additional $210 million on the Inter-bank Foreign Exchange Market
(Ecofin Agency) - The Central Bank of Nigeria (CBN) has injected an additional $210 million into the Inter-bank Foreign Exchange Market. A routine transaction that plays a key role in the currency stabilization through the availability of official circuits of foreign exchange for customer needs in various segments.
Out of this fund, $100 million is directed towards distributors authorized in the wholesale segment of the market, while the Small and Medium Enterprises (SMEs) segment received $55 million. The invisible segment of Customers requiring the foreign exchange to cover medical payments, tuition fees and Basic Travel Allowance (BTA) were also granted $55 million.
Thanks to a solid reconstitution of Nigeria’s foreign exchange reserves, the country has much more resources to intervene on the interbank foreign exchange market. Indeed, after hitting its lowest level ($25 billion) on December 13, 2016, the country’s forex reserves gradually recovered and peaked at $ 43.8 billion on March 9, 2018.