Trouble for dollar hoarders as CBN plans more forex injection

The Central Bank of Nigeria (CBN) has disclosed its plan to commence announce round of forex injections into the invisible segment of the market.

The planned action is expected to lead to a depreciation of the dollar against the naira.

Isaac Okorafor, CBN acting director of corporate communications, told journalists that the proposed action to inject forex in the interbank segment of the market was in line with the commitment of the CBN governor, Godwin Emefiele, to ensure that those who have legitimate need for foreign exchange have guaranteed access to it.

Okorafor said the action was a means of achieving the bank’s mandate of safeguarding the value of the naira., adding that the apex bank is determined to achieve a convergence of the rates in the interbank and Bureau de Change segments.

He added that the apex bank was determined to achieve a convergence of the rates in the interbank and bureau de change segments.

In February, the CBN adjusted its forex policy making forex available for tuition, medical and travel expenses.

Since then, CBN has created a forex window for small and medium enterprises (SMEs) to enable them import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter.

The bank also established a window for investors and exporters to encourage foreign investors in the country’s forex market.

Tony Elumelu, entreprenuer and chairman, United Bank for Africa, said global investors were excited about the forex policies of the CBN.

He said it had brought predictability to the forex market.