Nigeria central bank sells $210 mln on FX market after yuan auction


ABUJA, July 31 – Nigeria’s central bank has injected $210 million into the interbank foreign exchange market after auctioning the Chinese yuan last week to boost liquidity.

The bank said in a statement on Tuesday it had released $100 million earmarked for the wholesale market, $55 million for small businesses and individuals, and $55 million for certain dollar expenses such as school fees and medical bills.

Nigeria has been trying several options to curb pressure on the naira. The central bank said it sold $340.5 million on the interbank currency market last Friday.

In May, the central bank signed a three-year currency swap deal with the People’s Bank of China to facilitate trade between the two countries and cut reliance on the dollar. It sold 69.86 million yuan in its first auction of the Chinese currency, the bank said.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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