Currency Traders Make Panic Sales …As CBN Releases More Dollars

Following reports that the Central Bank of Nigeria (CBN), plans to pump more dollars in to the foreign exchange market, there are indications that currency traders are into panic sales.
According to The Tide source, the CBN is in the process of releasing an additional $350 million, bringing the total releases to $570 million within one week to further crash the value of the dollar.
Already, reports show that traders and other  market participants remain in shock over their losses in the last two weeks following the sharp and sudden appreciation of the naira.
According to the Acting Director, Corporate Communitcations of CBN, Mr Isaac Okorafor, with the improving reserve levels, the CBN was determined to continuously make forex available to all genuine customers through their banks.
He urged those hoarding the greenback to reduce  their losses by selling their dollar stock.
However, market watchers are of the opinion that there is the likelihood of a liquidity glut as the banks are beginning to send out sales people to scout for customers to buy-off their dollars.
This they say was in efforts to avoid losses arising from the expected appreciation of the naira against the dollar in the foreign exchange market.
The CBN, had in the last one week supplied a total of $570 million to the market, comprising,  $80 million for Basic Travel Alowance (BTA), Medical Fees and School Fees, $100 million in wholesale forwards, while another $350 million is planned for injection this week.