To strengthen and stabilise the naira in the short term, the Central Bank of Nigeria has injected about $100m into the Foreign Exchange market.
CBN’s surprise move came through the Wholesale Secondary Market Interventions.
Until Tuesday, May 19, 2020, the apex bank had, in consideration of the ravaging coronavirus disease and depleting foreign exchange reserve, temporarily suspended the auction.
It ha been taking calculated steps to curtail the continued downward slope of the country’s foreign exchange reserve, which has been significantly affected by the fall in demand of the nation’s crude oil, which in turn has reflected in dwindling earnings.
Regardless, the CBN continues to actively intervene in the Forex market as an active buyer and seller, to ensure the currency spot market remains liquid and efficient.
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