CBN spends $9bn to defend naira in 7 months
Central Bank of Nigeria (CBN) sold $9 billion to forex dealers through the interbank market between February 21 and August 31.
The figure was arrived at following a review of all the official data of FX sales released to the public by the CBN within the period.
The FX sales were intended to cover for personal and business travels, medical needs, and school fees, futures market and other approved transactions.
At the time CBN began massive funding of the FX market, the naira had lost significant value, trading at over N500/$1 at the parallel market.
Then rent seeking, speculation and hoarding ruled the FX market as individuals and banks made fortunes from huge unmerited profits to the detriment of the naira. The recession was also at its peak as government revenue plummeted.
The CBN intervention, from the improved government dollar earnings saw the naira recover to over N485/$1 in early March 2017.