Naira Closed at N1,531 as CBN Sells Dollars to Banks
The naira strengthened against the U.S dollar to N1,531 at the official FX window on Friday following the intervention of the Central Bank of Nigeria (CBN).
The local currency had come under intense pressures this week, with the spot rate climbing near N1539 at the interbank market during the week. The unwanted trend in the currency market forced the Apex Bank intervention.
During the week, the CBN sold $50 million to authorised dealer banks to ease foreign currency demand pressure, as reflected on intraday spot rate of N1538.5000 per dollar.
FX intervention has continued to tighten exchange rate as the authority floating auctions, selling to banks, albeit, at mild discount to ongoing market rate.
The spot rate hit intraday high of N1534.50 on Friday after the authority boosted the US dollar available at the supply side. In the parallel market, the naira closed the week at N1540.
Hence, the exchange rates gap between official and parallel market hovered around N9 per dollar amidst increasing speculative risk in the currency market.
On the bright spot, the gross external reserves balance climbed to $41.267 billion on Friday, supported by additional inflow totalling $23.421 million. Oil prices are headed towards a second straight weekly gain of 1%, with Brent hovering slightly above $68 per barrel. #Naira Closed at N1,531 as CBN Sells Dollars to Banks#
