The Central Bank of Nigeria injected $5.62bn into the foreign exchange market in the fourth quarter of 2020 as part of efforts to ensure the stability of the naira.
The CBN disclosed this in its report on ‘Transactions in the foreign exchange market’ in fourth quarter of 2020, stating that the foreign exchange inflow into the economy improved, following the bank’s policy directive of November 30, 2020.
According to the apex bank, it had directed the transfer of all diaspora remittances to the domiciliary accounts of the beneficiaries or payment of customers in foreign currency, as well as the closure of all Naira ledger accounts opened specifically for the purpose of receiving IMTO (foreign transfers from diaspora Nigerians) with immediate effect.
The CBN stated that the Federal Government, through the bank, continued its COVID-19 induced interventions in the real sector to boost non-oil activities and earnings, and cushion the negative impact of the pandemic.
This was reflected in the increase in sectoral utilisation of foreign exchange during the review quarter.
In addition, the re-opening of the air and land borders and the return to normalcy of economic activities boosted foreign exchange utilisation during the review period, the report said.
Punch
