The
Acting Director of Corporate Communications, CBN, Isaac Okorafor, has said the
naira’s recent appreciation was a result of calculated moves that were based on
intelligence reports, as well as the need to effect the right policies at the
appropriate time.
Substantiating
his claims, he said that when CBN placed $500 million in the market last week,
only $370 million was taken, which was the real demand and it also placed
another $230 million, while only $221 million was taken.
He
said that with forex reserves now at near $30 billion, the apex bank had
decided to do the intervention as it is more comfortable, unlike the level it
was before now, which didn’t allow the bank to feel comfortable enough to do a
kind of intervention needed when required.
“The CBN has
done a lot of intelligence on the markets and we came to the realisation that
much of what was driving the demand in the bureaux de change and the parallel
market was mere bubble and speculation.
“We reasoned that since there was pressure on those two segments
from people seeking personal travel allowance, medicals and tuition if we successfully
address that bit, the pressure would come down. We intervened in the market and
the market reacted positively and the naira started gaining strength,” he said.
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