CBN Injects $50mln to Support Naira in FX Market
The Central Bank of Nigeria (CBN) injected $50 million into the foreign currency market to boost liquidity and step down pressures from increasing US dollars for offshore payments.
To meet external funding obligations, Nigeria’s currency market experienced a mild US dollar demand shock, which halted the naira’s gaining streaks for two consecutive trading sessions.
Due to the FX shortage experienced, the CBN conducted fx intervention sales, selling dollars to authorised dealer banks. Some analysts emphasize that the reactivation of naira debit cards for offshore payments will push exchange rates to the edge in the coming months.
The naira is expected to trade within a stable range of ₦1515–₦1535/USD in the coming week, Anchoria Limited said in its market update.
Analysts anchored their prediction on improved FX liquidity and renewed CBN intervention, including last week’s $50 million sale and a successful OMO auction that attracted foreign investor interest. “These actions have helped ease demand pressures and boost market confidence, keeping volatility low”, the firm said in a note.
The firm noted mild pressure may resurface from corporate and offshore bids, especially toward month-end; the overall outlook remains cautiously bullish, provided policy support and liquidity conditions are sustained.
“We expect the Naira should stay stable, supported by CBN supply and exporter inflows, as upside pressure may arise from rising demand”, Anchoria said. #CBN Injects $50mln to Support Naira in FX Market Nigerian Exchange Soars Near N80trn as Investors Gain N1.08trn
