The Central Bank of Nigeria (CBN) has pumped over $42.3 billion into the foreign exchange market in the past year to ensure liquidity in that segment of the economy.
A breakdown of the numbers shows that about 7.89 billion dollars went into the market in the second quarter of 2018, while N11.88 billion was injected in the third quarter of 2018.
N10.72bn was pumped into the market in the fourth quarter of 2019 and N11.81bn went in as at the end of March 2019.
The Director of Corporate Communications Department, at the CBN, Mr Isaac Okorafor, attributes the relative stability in the forex market largely to the bank’s continued intervention.
According to some estimates, Retail Forex Trading in Nigeria has around 300-450 Million Naira ($10-$15m) daily trading volume.
In April 2017, the CBN introduced a new exchange rate window, the Nigerian Autonomous Foreign Exchange Fixing Mechanism (NAFEX), commonly known as the Investors’ and Exporters’ (I&E) window.
The I&E window and the interbank market have been seen as the main exchange rate windows utilised in foreign currency trading.