On Thursday, the Central Bank of Nigeria (CBN) intervened in the foreign exchange market, selling $61 million to authorized dealer banks to support the stability of the naira. This action is part of the bank’s continued efforts to enhance liquidity and sustain the naira’s strength amid market pressures.
The official market saw the naira close at N1,532 per dollar, up N13 since the intervention. The apex bank sold foreign currency at values ranging from N1,515 to N1,545 per dollar, according to auction documents, guaranteeing a sufficient supply to satisfy market demand.
Earlier in the week, the CBN injected an additional $28.5 million into the market, demonstrating its commitment to defending the naira. These interventions have contributed to improved liquidity and transparency in the forex market, enhancing the naira’s price discovery process.
The naira has experienced gains across multiple segments of the foreign exchange market, thanks to increased foreign currency supply. Analysts note that the CBN’s strategic actions have created a more stable environment for currency trading, supporting confidence among market participants.
The CBN’s actions demonstrate its commitment to stabilising Nigeria’s currency in the face of economic difficulties, as evidenced by the naira’s continued strength. It is anticipated that the ongoing emphasis on increasing foreign exchange liquidity will strengthen the naira even more and promote market stability in general.
