25 May 2018

Nigeria: CBN Injects Additional $100M Forex to Cater for Pilgrims

The Central Bank of Nigeria (CBN) on Thursday injected additional $100 million into the foreign exchange market (Forex) barely 24 hours after making available $210 million on Wednesday.

The bank said in a statement sent to PREMIUM TIMES that the additional injection of funds was to cater for the personal needs of Nigerians who may want to travel to fulfill personal obligations, particularly for pilgrimage.

The bank said the move was to safeguard the interest of customers seeking to purchase foreign exchange for personal obligations and checkmate any attempt at causing panic in the market.

On Wednesday, $210 million was allocated to the wholesale segment of the market, to take care of the the spike in the seasonal demand for foreign exchange to meet various personal obligations.

The statement said the CBN plans to inject more dollars into the market in the coming days, to checkmate any attempt to trigger artificial scarcity.

The CBN spokesperson, Isaac Okorafor, said the decision to inject fresh funds became necessary to protect customers from the activities of speculators who might want to capitalise on the increase in demand for foreign exchange at this time to make brisk gains.

Noting that the CBN had sufficient foreign exchange to meet genuine needs, Mr Okorafor cautioned dealers against speculation.

He warned that they stood to lose much if they chose to hoard currencies in anticipation of a spike and a depreciation in the value of the Naira.

On Wednesday, the CBN frowned at the action of some banks that reportedly refused to sell FOREX to customers requiring the currency for the purpose of religious pilgrimage or embarking on personal and business travel allowance (PTA/BTA).

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