CBN Defends Nigerian Naira With $37m Sold to Banks
The Central Bank of Nigeria (CBN) spent additional $37 million in exchange for equivalent amount in naira from banks as the authority continues to boost liquidity in FX market.
Despite expectation that the authority will keep at selling US dollar to banks, the naira outlook remains uncertain in 2025. A number of investment banks appear bearish on exchange rate outlook at different degree of projections that suggest the naira would fall further.
MarketForces Africa notice that investment banking firms are adding caveat to naira estimates following overhauling of Nigerian refineries –which is expected to reduce imported inflation.
On Tuesday, the CBN intervened in the FX market offering $37.1 million between the rates of N1,530 to N1,540 ,continuing its aggressive intervention sales to check exchange rate negative movement.
Still, the Naira against the US dollar to settle at N1,538.50 in the official market. Pre-new year FX trading data showed the currency market demonstrated stability with improved liquidity.
FX transactions occurred within the range of N1,520.00 and N1,550 per US dollar. Overall, the Naira appreciated by 13 basis points, closing at N1,535.00 per greenback on Tuesday. At the same time, the gross balance in the external reserves climbed to about $40.9 billion, according to data from the CBN.
Oil prices increased by approximately 2% as investors returned for the first trading day of the New Year with a positive outlook on China’s economy and fuel demand following a commitment from President Xi Jinping to stimulate growth.
Brent crude was priced at $76.11 per barrel, while US benchmark West Texas Intermediate (WTI) was around $73.34.
Likewise, Gold reached a high not seen in over two weeks on Thursday, driven by safe-haven purchases, as the market repositioned itself ahead of the Federal Reserve’s interest rate projections and President-elect Donald Trump’s upcoming trade tariffs. It was trading at around $2,654.94 per ounce. #CBN Defends Nigerian Naira With $37m Sold to Banks CBN Opens FX Window for BDC to Stock up at NFEM Rate
