After $1.2bn, CBN to pump fresh dollars into FX market

The Central Bank of Nigeria will be pumping fresh dollars into the foreign exchange market this week.
In the past two weeks, the CBN pumped $1.2 billion into the foreign exchange market to stem liquidity challenges faced by businesses and individuals across the nation.
But some analysts told Metrobusinessnews at the weekend that they fear the issue of sustainability as CBN may soon run out foreign exchange.
“How long can the CBN go in defending the naira with our hard earned fx. The fact thayt the foreign reserves is rising now does not mean that we should expend all on defending the naira,” he said.
Isaac Okorafor, the bank’s spokesperson, confirmed the proposed action of the CBN, further stating that the bank is resolute in its decision to stabilise the naira and leave speculators with regrets.
Okorafor also cautioned dealers in foreign exchange not to engage in any unwholesome practice that is detrimental to smooth operations in the market, warning that the CBN would impose heavy sanctions on any organization or official involved in such act.
The CBN on Thursday pumped in fresh $170 million into the foreign exchange market, as foreign reserves hit 2017 high.
The bank offered the sum of $100,000,000 as wholesale interventions, while it gave another $70,000,000 to meet requests for business and personal travel allowances.
The nation’s foreign reserves hit 2017 high of $30 billion on Wednesday, the second time the reserves is crossing the $30 billion mark since Buhari took office in May, 2015.