Segun Akanni, Toronto, Canada 
A day after the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its two day bi-monthly meeting in Abuja, with all status quo unchanged, the Naira has been forced to remain stable at the same rate it has been trading since the foreign exchange market opened for the week.
The last time the local currency recorded any gain was last Wednesday when it strengthened by five points against the dollar, from 385 to 380 at the parallel market.
The local currency, on Wednesday closed at 380 to a dollar but weakened to the pound sterling at 490 compare to 485 it traded a week ago, while Euro remained unchanged at 420 at the unofficial market.
The closing rate at the official market yesterday was slightly weakened to 305.90 per dollar against the quoted rate of 305.45 last Wednesday.
At the Bureau De Change (BDC) window, the Naira remained at the regulated rate of N362 to the Dollar, while the Pound Sterling and the Euro closed at N495 and N423.
The naira, however, appreciated at the Investor and Export FX window, with an opening rate of 381.13 against 382.69 opened last week and 381.81 closing rate compare to 383.11closed last week Wednesday.
But at the interbank market, the naira traded at 319. 99 to the Dollar, 414.79 per pound sterling and 360.24 to the Euro.
The MPC on Tuesday left the Monetary Policy Rate unchanged at 14 per cent, as well as the Cash Reserves Ratio at 22.5 per cent.
The CBN Governor, Mr. Godwin Emefiele, who announced the decision of the committee at the end of a two-day meeting held at the apex bank’s headquarters in Abuja explained that the members of the committee agreed to maintain the current monetary policy stance.
The governor said the committee also voted to retain the Liquidity Ratio which was left at 30 percent; and the Asymmetric Window which was left at +200 and -500 basis points around the MPR.
Even as some financial experts had earlier in the week called for a downward review of the Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) to 12 per cent from 14 per cent, to enhance economic recovery.
But the apex bank within the week lifted the foreign exchange forex market with a $255 million intervention to ease pressure on the naira.
The injection assisted marginally to stabilise the naira against the greenback and deepen dollar inflow into the market.
A breakdown of the intervention showed that $100 million was released for the wholesale segment of the market for both spots and forwards. Basic Travel Allowance (BTA), which comes under invisibles segment, got $50 million. The Small and Medium Scale Enterprises (SME) segment received $55 million.
Traders, citing a notice from the regulator, said the currency forwards being auctioned would be settled within 60-days and backed by customer demand.
The naira was exchanging at N381 to the dollar in the parallel market, and could strengthen further as currency speculators abandon the market over fears of recording huge losses.
The naira has firmed on the black market from its record low of N520 to the dollar in February, before the CBN’s intervention in the foreign exchange market.
Besides, the rates convergence, which the World Bank and international investors have been demanding from the CBN, is gradually being achieved as more confidence returns to the market.
The Acting Director, Corporate Communications Department at the CBN, Isaac Okorafor, said the Investors and Exporters segment of the market had so far recorded a trade volume of $1.1 billion from both the CBN and autonomous windows.
According to him, the feat was an indication of the appreciable level of confidence in the foreign exchange management by foreign investors and autonomous suppliers of foreign exchange to the market.
The CBN has sold more than $4 billion to various sectors of the economy since it started intervening in the official market in February, which currency traders say has increased liquidity in the official market.
