Forex: Dollar Crashes Again, Exchanges at N440 as CBN Floods Market


In keeping with its determination to increase liquidity in the foreign exchange market, the Central Bank of Nigeria (CBN) on Monday released another $100m into the wholesale forwards segment of the market and pumped an additional $80m into the banks specifically for the settlement of dollar demand for school fees, medicals and Personal Travel Allowance (PTA), among others. The Economic Confidential reports that the Naira has appreciated at the parallel market in spite of the rise in the nation’s foreign reserves. The Nigerian currency exchanges at N440 on Monday after closing at N495 last Friday. It also appreciated against both the Pound Sterling and the Euro by exchanging at N560 and N480 respectively as against 615 and N530 traded in the last 72 hours, reacting to the recent interventions by the Central Bank of Nigeria. Meanwhile in a release by CBN Spokesperson, Isaac Okorafor, the Bank said that its commitment to providing enough forex for legitimate business remains unshaken, reiterating that it would do “everything possible” to ensure the steady supply of forex to the market. It will be recalled that efforts by the CBN in making available large amounts of forex to the market has led to the appreciation of the Naira by over N85 in less than one week. There are fears in the market that the local currency may well be on a permanent journey to its natural value put by some analysts at less than N300 to the dollar. The CBN had maintained that much of the dollar demand had been a bubble created by speculators and hoarders of the greenback. On a radio programme on Monday the apex bank had warned market players and keepers of dollars to make hay and sell their holdings in order to avoid heavy losses


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