Naira Trades Soft Post CBN $100 Million FX Intervention
The naira traded soft at the Nigeria foreign exchange market (NFEM) on Monday following a $100 million FX intervention made by the Central Bank last week.
The local currency faces pressures from increasing demand for dollars, stoked by year-end imports and some multinationals that are upstreaming US dollars abroad.
FX data released by the CBN showed that the official rate touched an intraday high of N1457 per dollar, a moderate depreciation from the previous midday quote on Friday.
The CBN came to market to support the naira with $100 million in FX sales to banks and other authorised dealers with the aim of strengthening aggregate US dollar liquidity.
The FX intervention proved insufficient to redirect the worsening exchange rate last week, and the pressure continued to mount on Monday.
Hence, the official rate depreciated 0.10% to N1,451.86/$ at the official NAFEM window, following increased demand for the dollar amid ongoing year-end activities.
In the parallel market, the naira remained unchanged at N1,463/$, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
The market anticipates the gap between the official and informal segments to converge as the CBN shrinks the number of licensed Bureaux de change operators to 82. MarketForces Africa gathered that the authority will start supplying dollars to the informal market to realise the true value of the local currency from 2026. VFD Closes Strong as Investors Confidence Surges, Defies Rights Issue Pressure
