Currency Traders in Panic Sales as CBN Pumps in More Dollars

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Reports  that the Central Bank of Nigeria (CBN) plans to  pump more dollars into the foreign exchange market in continuation of efforts  to strengthen the naira, have triggered  positive reactions causing it to attain a better exchange parity with the greenback.

The Nation learnt that the apex bank is in the process of releasing an additional $350million, bringing the total release to $570m within one week to further crash the value of the greenback.

Already, traders and other market participants remain in shock over their  losses in the last two weeks following the sharp and sudden appreciation of the naira.

The Acting Director, Corporate Communications of the apex bank, Isaac Okorafor, said that  with the improving reserve levels, the CBN is determined to continuously make forex available to all genuine customers through their banks.

He asked those hoarding the greenback to reduce their losses by selling their dollar stock.

Market watchers are of the opinion that there is the likelihood of a liquidity glut as the banks are beginning to send out salespeople to scout for customers to buy-off their dollars in an effort to avoid losses arising from the expected appreciation of the naira against the dollar in the foreign exchange market.

The CBN has in the last one week supplied a total of $570million to the market comprising $80million for Personal Travel Allowance (PTA), Medical fees and school fees, $100million in wholesale forwards, while another $350million is planned for injection this weekend.

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