CBN TO PUMP ADDITIONAL $350 MILLION TO THE FOREX MARKET, PANIC AMONG TRADERS

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[Abuja]–The Central Bank of Nigeria (CBN) will on Saturday pump an additional sum of $350 million into the foreign exchange market in continuation of its strategy to further strengthen the value of the Naira.

This will bring the total sum of dollars that has been pump in to the forex market to $570 million in this week alone to further crash the value of the Dollar.

These activities by CBN, which has brought about sudden appreciation of the Naira, has  brought panic among traders and other market participants who are yet to recover from the losses some of them have suffered in the last two weeks.

The Acting Director, Corporate communications, Isaac Okorafor, while confirming the development said that, with improving reserve levels, the bank was determined to continuously make forex available to all genuine customers through their banks, advising those hoarding the greenback to reduce their losses by selling their dollar stock.

It will be recalled that since last Tuesday the CBN has so far supplied a total of $570 million to the market made up of $80m for Personal Travel Allowance (PTA), Medicals and school fees, $100m in wholesale forwards, plus the additional $350 million planned for injection today.

This constant injection of dollars into the forex market, which continues to improve  appreciation of the Naira is bringing fears among traders and other market participants as this continues to increase their loss.

In fact, according to TODAY, banks are beginning to send out salespeople to scout for customers to buy the dollar in an effort to avoid losses arising from the expected further appreciation of the Naira.




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