In the bid to sustain its policy of exchange rate stability amidst sustained demand pressures, the Central Bank of Nigeria (CBN) increased dollar injections into the foreign exchange market by 87 percent to $40 billion in 2018.
Meanwhile net foreign exchange inflow into the economy rose by 33 percent to $12.01 billion in the fourth quarter of the year These figures are contained in the CBN’s economic report for the fourth quarter of 2018 (Q4’18) released yesterday.
In the interbank market, the apex bank injected $6.36 billion, up by 12 percent from $5.6 billion in 2017. It disbursed $3.14 billion through swap transactions in 2018, up by 190 percent from $1.08 billion in 2017.
Dollar sales to bureaux de change (BDCs) rose by 126 percent to $9.44 billion, from $4.18 billion in 2017.
Similarly, dollar sales through forwards transactions rose by 52 percent to $15.97 billion from $10.54 billion in 2017.
The report however showed that foreign exchange intervention of the CBN declined by 16.1 percent to $9.18 billion in the Q4’2018 from $11.88 billion in Q3’18.
The report stated said: “A total of $9.18 billion was sold by the CBN to authorised dealers in the fourth quarter of 2018. This represented 16.1 per cent decline below the level in the third quarter of 2018, but was 80.6 per cent above the level in the corresponding period of 2017.
The development, relative to the preceding quarter reflected the decline in inter-bank sales and swaps transactions in the review quarter.”