Naira Weakens Slightly Against Dollar As CBN Intervenes In FX Market
The naira slipped marginally against the dollar on Monday, closing at ₦1,533.67/$ at the Nigerian Foreign Exchange Market, according to figures from the Central Bank of Nigeria (CBN).
This marks a 0.08 per cent decline from Friday’s ₦1,532.51/$.
During intraday trading, the currency traded between ₦1,532/$ and ₦1,535/$, even as Nigeria’s external reserves rose to $40.72bn last Wednesday.
At the parallel market, the naira closed at ₦1,543/$, a slight gain compared with last week’s average of ₦1,545/$.
Market analysts say the CBN’s continued interventions and improved foreign exchange inflows are helping to stabilise the currency.
However, they warn that a stronger US dollar and weaker crude oil prices could limit further gains.
AIICO Capital revealed the apex bank sold $166m last week, while Cordros Capital and Cowry Research forecast that the FX market would remain relatively stable in the short term, buoyed by foreign portfolio inflows, non-oil exports, and ongoing policy refinements.
