CBN INJECTS $498M IN FOREX MARKET IN ONE WEEK

settled OTC futures for the 12 instruments on the calendar stood at US$ 3.4billion from US$ 3.3billion the previous week. The JUNE 2018 contract received the most subscription ( US$ 40 million) bringing total value to US$ 185.8 million while the rest of the contracts received minimal participation.

According to Afrinvest West Africa Limited, the naira/dollar NOV 2017 contract with total value at US$543.1 million will be maturing this week.

“We expect this to be replaced by an equivalent Naira/Dollar NOV 2018 contract.

With external reserves at a 30-month high of US$34.9bn coupled with the US$3.0bn raised via Eurobond issuances, we expect the CBN to sustain frequency of interventions and the Naira to remain stable at all segments of the FX market in the near term,” the research firm added.

CBN Governor, Mr. Godwin Emefiele last week said the Monetary Policy Committee (MPC) expressed confidence that the tight stance of monetary policy and the stability in the exchange rate of the naira should continue to positively weigh in on price developments.

“The committee reaffirmed its commitment to maintaining price stability, which is crucial to sustainable economic growth and development,” he stated.

He said the committee also welcomed the review of the Economic Recovery and Growth Plan (ERGP), in an effort to realise the objectives of the plan, but called for the quick passage of the 2018 Appropriation Bill by the National Assembly, so as to keep fiscal policy on track and deliver the urgently needed reliefs in terms of employment and growth of the economy.

On financial stability, the committee noted the concentration of non- performing loans in a few sectors but observed that the overall condition and outlook for the banking system was stable, as deposit money banks’ balance sheets remained strong.