They have also insulated the economy from the whirlwinds forex proffer through emerging and frontier markets, writes COLLINS NWEZE . While the American dollar continues to appreciate, other countries’ currencies have been nose diving. Besides, the trade tensions between the US and China are beginning to take a toll on global trade.
For instance, interest rate hike in the US, funds flow reversals away from emerging and frontier markets, appreciation in the value of the United States dollar relative to other emerging markets’ currencies have triggered over 20 per cent loss in value of four emerging market currencies from January to September. Anchor Borrowers programme, as well as forex intervention at the interbank forex market to sustain dollar supply at the retail end of the market. The bank has committed over N23 billion to the Anchor Borrowers’ Programme, with active participation across 14 states of the Federation. In Kebbi State, over 78,000 smallholders are now cultivating about 100,000 hectares of rice farms. It is worthy of note that before the policy intervention of the CBN, Nigeria was consuming about 6. 1 million tonnes annually, most of it imported and was producing less than 2. The bank has intervened through various developmental programmes, all at single digit interest rates, disbursing N393 billion in 490 projects under the Commercial Agriculture Credit Scheme, N79.
4 billion under the Power and Aviation Intervention Fund with 6. 7 million direct jobs and a lot more indirect jobs. These policy decisions, analysts said have kept the naira stable at both the official and parallel market. Yuan interventions have ensured that forex demand at the retail end of the market are met. E Foreign Exchange Window, forex speculators lost over N500 million, as the CBN sustained its dollar interventions in the interbank market.