Naira Trades Flat as CBN Injects US$150 mln into FX Market
The naira traded flat against the dollar at the Nigeria Foreign Exchange Market (NFEM), reflecting sustained stability of the local currency amidst fresh dollar sales to local banks in the course of the week.
The latest FX update from the Central Bank of Nigeria (CBN) showed that the official rate settled at N1533.56 per dollar, compared with N1533.73 on the previous day. The spot rate touched an intraday high of N1536 at the official window on Friday, and the lowest quote for the day was N1532.50.
The local currency exchange rate stabilized week on week, from the opening of N1533.74, supported by dollars supplied by foreign portfolio investors that participated in the OMO bill auction.
The forex market recorded fresh intervention this week, and this helped keep liquidity strong. Investment firms reported that the CBN injected USD 150.00 million into banks to boost the supply side.
Nigeria’s foreign reserves increased further, growing by USD 800.51 million week on week to USD 40.16 billion. The reserves raised market confidence that the local currency would remain strong with the CBN support.
Analysts at Cordros Capital Limited said they remain optimistic about the naira, supported by expectations of sustained FX liquidity. Elevated yields, especially in the OMO market, and a softer US dollar are likely to continue attracting foreign portfolio inflows into the FX market in the near term.
Additionally, improved market confidence and limited incentives for naira speculation are expected to reinforce steady inflows from domestic sources. Analysts expected the naira to maintain its course with measured appreciation, backed by rising confidence in foreign exchange markets. #Naira Trades Flat as CBN Injects US$150 mln into FX Market Equity Investors Gain N479bn as Reforms Fuel Insurance Stock Rally
