CBN Defends Naira With $3.36bn in Two Months

The Central Bank of Nigeria injected $3.36bn into the foreign exchange market in two months as part of efforts to ensure the stability of the naira.

Figures obtained from the CBN’s January monthly report on ‘Foreign Exchange Market Developments’ showed that $1.71bn and $1.65bn were injected in December 2021 and January 2022 respectively.

The report said, “Total foreign exchange sales to authorised dealers by the Bank was $1.65bn in January, representing a decrease of 3.1 per cent, relative to $1.71bn in December 2021.

However foreign exchange sales to the Investors and Exporters and Secondary Market Intervention Sales windows fell by 13.7 per cent and 16.3 per cent to $0.58bn and $0.54bn, respectively, in the month under review.”

The CBN stopped forex intervention through the Bureau de Change segment of the market in 2021 and said it would stop further interventions through the banks by the end of 2022.

Experts have, however, decried the unprecedented rate of oil theft recorded in recent times and its debilitating impact on government revenue and accretion to the country’s external reserves, which are used to defend the naira value.

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