Financial Experts Laud CBN’s Forex Intervention

As Central Bank of Nigeria (CBN), continues to sustain foreign exchange intervention, some experts have expressed satisfaction on the continued intervention so as to bridge the gap between the interbank rate and parallel market rate.
The CBN, this week, offered a total of $180 million to meet bids for wholesale auction and requests for invisibles such as medicals, school fees and personal travel allowances valued at $80 million, through the inter-bank window
Speaking this Weekend, MD/CEO of Financial Derivatives Company Limited, Mr. Bismarck Rewane, said CBN’s prompt intervention in the foreign exchange (FX) has continued to appreciate the local currency at the FX market. He welcomed the recent CBN’s policies and praised the sustained medicals, school fees and personal travel allowances intervention.
He said; “If the CBN continues to increase supply in the forex market, the naira will continue to appreciate. Once that stops, the naira at the exchange rate will definitely depreciate. It is good CBN is intervening in the forex market but the question is that if CBN does not announce intervention in the next three days, what do you think is going to happen to naira?
“Another question is, why the sudden intervention by CBN? CBN should have acted before now. Now that CBN has increased intervention in the medicals, school fees and personal travel allowances, it must be sustained. By doing so, the apex bank has bridged the gap between the interbank market rate and parallel market rate,” he explained.
Commenting also, managing director, Cowry Asset Management Limited, Mr. Johnson Chukwu, praised the CBN for its FX policies.