Nigerian Central Bank injects $323 million, ¥18 million into FX market

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Nigerian Central Bank injects $323 million, ¥18 million into FX market

On Friday, the 29th of November 2019, the Central Bank of Nigeria, the largest-economy in Africa by size which had been shutting down its borders for multiple months to prevent smuggling to its neighbouring countries and had been duelling to prevent a steep headwind of its currency alongside a malicious shortage in foreign currency reserves, had injected a sum of $323 million and ¥17.9 million in to its currency market in a bid to keep it stable.

Meanwhile, following Central Bank’s intervention on to Nigeria’s currency market, a Central Bank spokesman was quoted saying on Friday (November 29th) that the US dollar injection was required for industrial raw materials alongside agricultural machineries, while the Chinese Yuan was instilled for the Chinese Yuan-based letters of credit, adding that the Nigerian Central Bank would continue to inject fiscal stimulus into the nation’s FX market to ensure a sufficient scale of liquidity.

Nonetheless, multiple businesses said that their importers were not interested to purchase the US dollar above present range, which eventually had helped to keep Nigerian currency stable, as foreign inflows were filling the coffers of the African nation’s dried-up FX reserve.

However, in the black markets, the Nigerian currency had been trading between 362 to 362.50 against the American currency throughout the week, while the Central bank supported official market was quoting a price of 307 Naira per US dollar.