The Nigerian naira saw a slight appreciation against the US dollar, closing at N1,510 after the Central Bank of Nigeria (CBN) injected $181 million into banks. According to data from the FMDQ platform, the naira strengthened by 0.15% in the official foreign exchange market.
This upward trend in currency rates was facilitated by the CBN’s expansion of the dollar supply. The CBN invested $114.8 million in the foreign exchange market on Friday, with exchange rates ranging from N1,497/$1 to N1,503/$1. As a result, the market’s demand pressure was lessened, bringing the weekly total of FX transactions to $181.25 million.
Due to sustained CBN interventions and increased foreign exchange liquidity from foreign portfolio investors (FPIs), the Nigerian currency has held steady despite the ongoing demand for foreign exchange. The implementation of the Electronic Foreign Exchange System (EFEMS) has also contributed to naira stabilisation, according to analysts from Cordros Capital Limited, by increasing market transparency and lowering excessive volatility.
