As the naira strengthens, the Central Bank of Nigeria sells more than $300 million to banks.

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The Central Bank of Nigeria has injected over $300 million into Deposit Money Banks in the last two weeks to stabilize the naira-dollar exchange rate, according to an advisory memo from the Association of Corporate Treasurers of Nigeria obtained by The PUNCH.

The memo revealed that the CBN sold over $200 million to banks below N1,500/dollar last week and continued to sell foreign exchange to banks at rates around $1,450 this week.

Confirming the development, an executive committee member of the ACTN stated that the memo aimed to guide decision-making amid the naira’s significant depreciation. The naira began the year at N891/$ but has faced multiple challenges in both official and parallel markets.

Despite recent interventions, including raids on currency traders, the naira experienced some appreciation. At the official market’s close on Monday, it stood at 1,582/$, while at the black market, it ranged between N1,555/dollar and N1,560/dollar.

To address forex market transparency and accountability, the CBN has implemented various measures, including revising operations for International Money Transfer Operators and canceling cash payments for Personal and Business Travels. Additionally, the Federal Government is working on raising $10 billion to improve liquidity in the forex market and has reportedly blocked online platforms of crypto firms to curb illicit fund movement.

Moreover, the EFCC has been cracking down on illegal currency racketeering, with recent arrests of suspected currency racketeers in different states.

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