Naira Strengthens Against Dollar Following CBN’s Forex Market Intervention

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The Nigerian naira demonstrated strength against the US dollar, closing at 740.67/$ on the Investor & Exporter forex window. This gain follows a series of positive movements since the Central Bank of Nigeria (CBN) announced its planned intervention in the forex market. The naira had previously closed at 773.17/$ on the I&E window.

At the parallel market, Bureau de Change operators reported that the value of the naira remained relatively stable, with transactions being conducted at around N835 to N850 per dollar, similar to the previous day’s trading.

Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria, highlighted the impact of the CBN’s intervention on the forex market. He stated that the CBN’s clear message about supply calibration and sanctions against illegal economic behaviors by market participants had contributed to the recent positive strength of the naira.

Gwadabe also emphasized the importance of policies that democratize and demonopolize market participants, as well as the need to leverage Bureau De Change operators for market deepening and flexibility in product scope.

The Acting Governor of the CBN, Folashodun Shonubi, had previously announced new measures to stabilize the naira against the dollar after briefing President Bola Tinubu on the bank’s actions to halt the naira’s decline.

Additionally, the Nigerian National Petroleum Limited secured a $3 billion emergency loan aimed at stabilizing the naira. This step further underscores efforts to reinforce the naira’s strength in the forex market.

Punch

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