Forex traders have been set on panic button as news filtered that the Central Bank of Nigeria will, this weekend, further pump more dollars into the foreign exchange market in continuation of its strategy to strengthen the value of the Naira.
According a source in the apex the Bank, there is a planned release of an additional $350 million.
This will bring to $570 million released by the CBN this week alone to further crash the value of the Dollar. Already, there is heightened fears among traders and other market participants who are yet to recover from the losses of the last two weeks owing to sharp and sudden appreciation of the Naira. The Acting Director, Corporate Communications of the CBN, Isaac Okorafor, confirmed the development.
Okorafor reiterated 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. Market watchers say there is the likelihood of a liquidity glut as banks are beginning to send out sales people to scout for customers to buy off their dollars in an effort to avoid losses arising from the expected further appreciation of the naira. The CBN had in the last one week supplied a total of $570 million to the market.
It is made up of $80 million for Personal Travel Allowance, medical and school fees, $100 million in wholesale forwards, while another $350 million is planned for injection this weekend.
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