Naira Rises to N1455/$, CBN Injects Dollar into FX Market
The naira closed strong at N1455 per US dollar at the Central Bank of Nigeria (CBN) official foreign exchange market in the absence of liquidity pressure.
The local currency maintained its upward momentum against the dollar on Friday, strengthening 0.79% to ₦1,455.17 at official window. The spot rate touched an intraday high of N1462.5000, reflecting strong FX liquidity in the system.
This week, the CBN intervened, selling USD22.20 million to authorised banks amidst growing external reserves. FX movement data from the CBN showed that gross external reserves increased for the thirteenth consecutive week.
Nigeria’s foreign reserves surged by USD31.63 million to USD42.58 billion this week. In the forwards market, the naira rates appreciated across contracts, according to Cordros Capital Limited.
The details report showed that the forward contract for 1 month appreciated by +0.7% to NGN1,490.79/USD, and the 3-month rose by 0.9% to NGN1,537.97/USD.
Also, the forward FX contract for 6 months climbed by +1.0% to NGN1,608.28, while 1 year advanced by +1.3% to NGN1,742.25 per dollar. Analysts maintained a positive outlook on the naira, supported by expectations of sustained FX liquidity.
On the domestic front, rising non-oil exports and improving market confidence should underpin inflows, while externally, healthy FX reserves, a positive current account position, and a shift toward global monetary easing are expected to reinforce foreign investor sentiment and stimulate additional FX market inflows. #Naira Rises to N1455/$, CBN Injects Dollar into FX Market Chams Riding a Wave of Positive Market Momentum Post-Rights Issue
