Central Bank of Nigeria will sustain its recent intervention on the foreign exchange market by pumping proceeds from oil sales into the forex market in order to boost the value of the country’s legal tender, naira.
This was revealed by Chief Executive Officer, Economic Associates, Mr Ayo Teriba, in Abuja today.
According to Teriba,
“We are back to a situation where the Forex at the disposal of the CBN is likely to go up.
“The CBN could not intervene in the Forex market in 2016 because of low oil production, prices and because foreign reserves were also low.
“Today, oil price is up, reserves have also gone up, the outlook of the oil prices is stable and production in Nigeria is going back to capacity; so it has the capacity to intervene.
“In a couple of months, the apex bank should be able to meet all of the demands and all the multiple exchange rates will converge.”