The Central Bank of Nigeria has pumped in another $100 million to the Forex market in order to help the naira recover.
*Photo used for illustrative purpose*
As part of its resolve to strengthen the naira, the Central Bank of Nigeria on Monday, 27th February injected another $100m into forex market, according to Vanguard. This is as a result of the new foreign exchange (FX) policy actions announced a week ago by the apex bank.
The CBN had on Thursday last week, sold $221,371,218.04 to banks in its second special wholesale intervention plan. This is the third time now.
A breakdown of the amount sold by the CBN showed last week showed that it auctioned $162,850,000 to 10 banks in a transaction with 30 days tenor, while six banks participated in a separate auction with 60 days tenor in which $58,521,217.04 was sold.
As a result of the new policy, the naira has recorded tremendous recovery against the dollars closing as low as N460/$1 on Friday. With this new strategy, it is believed the naira will recover faster than expected as dollar is bound to crash.
More details later...