Naira to firm as CBN plans more injection into inter-bank market

As the inter-bank forex market resumes after the Workers’ Day holiday, there are strong indications that the Naira is set for a strong showing this week as the Central Bank of Nigeria (CBN) commences another round of forex injections into the invisibles segment of the market.

Industry experts are of the view that the rate of forex liquidity being pumped into the system by the CBN will lead to a depreciation of the dollar against the naira.

The CBN Acting Director of Corporate Communications, Isaac Okorafor, in a chat with business correspondents at the weekend confirmed moves by the apex Bank to inject more foreign exchange into the inter-bank segment of the market, saying it was in line with the commitment of the Governor, Godwin Emefiele, to ensure that those who had legitimate need for foreign exchange were guaranteed access to it.

While stressing that the actions of the bank were in sync with its mandate of safeguarding the value of the local tender, Okorafor said the CBN remained determined to achieve a convergence of the rates in the interbank and Bureau de Change segments.

With the latest policies of the CBN, which cater specifically for SMEs, exporters and importers, market analysts are of the strong view that the Naira will firm up against other major currencies when trading commences this week.

Speaking at the weekend, frontline entrepreneur, Tony Elumelu also disclosed that global investors were excited about the forex policies of the CBN, which he stressed had brought predictability to the forex market.

It will be recalled that the CBN recently issued a forex policy statement establishing special windows for Small and Medium Enterprises (SMEs) to enable SMEs import eligible finished and semi-finished items not exceeding $20,000 for an enterprise per quarter. The Bank also established an “Investors’ and Exporters’ forex Window” aimed at encouraging foreign investors in the country’s forex market.

Okorafor again urged all stakeholders to play their respective roles in ensuring a smooth running of the foreign exchange market for the benefit of the Nigerian economy.

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Ezeadichie Onyeka Michael is the Co-Founder of Haelsoft, a Professional Services Company in Nigeria that provides Information and Technology Services for small and big size companies in Nigeria(Africa). He is an Entrepreneur and Venture Capitalist with Expertise in Web Technology and Digital Marketing. He has developed & Implemented Digital Marketing Strategies(Campaigns) for top brands across sectors in Finance, Telecommunication, Ecommerce who operate in the African market. His professional experience includes key roles at Google Business Group(Nigeria), Google Women on the Web (Nigeria), Edubridge Consultant and Wild Fusion where he has trained over 500 Entrepreneurs on how to use various Web Technology products to succeed online. Customer centricity, User Experience, Conversion optimization are 3 pronged framework he applies around the often-frenetic world of web analytics to ensure that clients stay competitive in the market. He believes that investing in talent is the key to long term success for brands across Nigeria (Africa).

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