How CBN Stabilises Naira With $7.6bn in 5-month

As part of efforts to stabilise the Nigerian currency, Naira, against foreign currencies, particularly the dollar, the Central Bank of Nigeria (CBN), has injected about $7.6 billion between January and May 2022.

The breakdown of the apex bank interventions in the foreign exchange market showed that it intervened in the markets with $1.65 billion, $1.39 billion, and $1.82 billion in January, February, and March, while the interventions were $1.56 billion and $1.18 billion in April and May, respectively.

The data which was obtained from its monthly economic reports on foreign exchange market developments, also, revealed that total foreign exchange sales to authorised dealers by the bank stood at $1.18billion, representing a decline of 24.4 per cent when compared with $1.56billion recorded in April.

Further analysis of the statistics, however, shows that foreign exchange sales at the Investors and Exporters and interbank/invisible windows decreased by 37.9 per cent and 0.7 per cent to $0.16bn apiece, below their respective levels in the preceding month.

“Similarly, SMIS and matured swap contracts fell by 7.0 per cent and 71.4 per cent to $0.64bn and $0.10billion, respectively, compared to the amounts in April. However, foreign exchange sales at the Small and Medium Enterprises window rose by 8.4 per cent to $0.12billion in the review period,” the report read