Expectations high Naira will firm up more with Dollar requests declining Indications of excessive liquidity in the market emerged on Thursday last week when operators could only pick a little over $39 million out of the $100 million offered for bid by the apex bank Share this:

The efforts of the Central Bank of Nigeria aimed
at ensuring stability in the foreign exchange
market may have started yielding results as the
market is now awash with liquidity surfeit.
Indications of excessive liquidity in the market
emerged on Thursday last week when operators
could only pick a little over $39 million out of the
$100 million offered for bid by the apex bank.
According to market analysts, with this
development, the Naira is set to firm up against
major currencies like the Dollar and pound
sterling during the week.
It will be recalled that the Central Bank of Nigeria
last week opened a special window for to enable
Small and Medium Enterprises to access forex
for the importation of eligible finished and semi-
finished items not exceeding $20,000 for an
enterprise per quarter.
That was in addition to the special intervention in
the Bureau De Change segment of the foreign
exchange market, which resulted in each
operator accessing $20,000 as against the earlier
stipulated $10,000 per week.
Isaac Okorafor, the CBN spokesman, explained
the Bank’s special interventions were
necessitated by its findings that a large number
of SMEs were being crowded out of the forex
space by large firms and also service genuine
demand for invincible like tuition fees, medical
and personal/basic travel allowance.
Alabatvnews.