CBN Defends Naira with $39m in Forex Market
In a bid to defend the local currency, the Central Bank of Nigeria (CBN) conducted forex market intervention On Thursday as part of efforts to stem negative tide against the naira.
The apex bank sold $39 million to authorised dealer banks in the foreign exchange market between the rates of N1570 – N1580 per US dollar.
The CBN had stayed away from conducting foreign currency sales to banks in a bid to entrench its willing buyers, willing sellers stance. But the naira has suffered greatly from the forces of demand and supply.
On sustainable basis, demand for US dollar has grown, outpacing demand for naira, thus pushing exchange rate to an undesirable level. in a country that depends more on imports.
Seeing that the naira has no strength to survive the onslaught in the forex market, the CBN reversed itself with weekly FX sales to authorised dealers. At the close of trading session, the naira settled at N1570 in the official window per US dollar. #CBN Defends Naira with $39m in Forex Market
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