Naira to Appreciate Ahead of Heavy Injection of FX by CBN as FX availability excites manufacturers

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Monday, May 08, 2017 10:53 AM / CBN 

Strong indications emerged over the weekend that the Central Bank of Nigeria (CBN) is set to inject more foreign exchange through intervention segments of the market thereby heightening expectations that the Naira will appreciate significantly during the week.

The expectations became rife following the inability of the authorized dealers to fully subscribe to various amounts offered by the apex Bank on two consecutive times last week. Those two events alone sent jitters to currency speculators perceiving Dollar glut as imminent in the market.

Laying credence to this development, spokesman of the apex Bank, Isaac Okorafor, while exchanging views news men over the weekend, confirmed the anticipated interventions in most segments of the market during the week, with effect from Monday, May 8, 2017.

According to him, the Bureau D’ Change (BDC) and the Small and Medium Scale Enterprises (SMEs) along with other major segments will also receive the adequate intervention with a view to providing liquidity in the entire foreign exchange market.

Meanwhile, manufacturers have praised the CBN over the foreign exchange management strategy adopted recently.

The Director General of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, was recently quoted as saying the   “the recent pronouncement of the CBN comes as a relief. If the intervention is sustained, there’s no doubt that we will have continued improvement in sourcing raw materials.”

Only recently too, a foremost entrepreneur, Tony Elumelu also lauded the foreign exchange regime noting that “the recent policy initiatives of the central bank under the watch of Emefiele had restored predictability, improved market confidence and significantly added a boost to the value of the national currency, fuelling optimism that the economy would soon rebound from recession.”

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