CBN explains why naira is appreciating

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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