Naira Weakens Slightly to ₦1,533/$ as CBN Interventions Sustain Market Stability

The Nigerian naira opened the week weaker at ₦1,533.67 per dollar at the official Nigerian Foreign Exchange Market, according to figures published on the Central Bank of Nigeria (CBN) website. This represents a 0.08% dip compared to Friday’s ₦1,532.51/$. During intraday trading, the naira touched a high of ₦1,535/$ and a low of ₦1,532/$, despite rising external reserves which reached $40.72 billion as of last Wednesday.

At the parallel market, the naira closed at ₦1,543/$, slightly stronger than last week’s average of ₦1,545/$. Analysts note that the market has been witnessing cautious optimism as the CBN sustains interventions to stabilize the currency amid external pressures.

Market projections suggest that the naira will remain largely stable this week at the official window, supported by increased FX inflows and ongoing central bank interventions. However, analysts at Cowry Research warn that a stronger U.S. dollar and softening crude oil prices could weigh on the currency, creating intermittent pressure.

AIICO Capital, in its weekly update, revealed that the CBN sold about $166 million last week to support liquidity. The firm believes that current policy adjustments and fiscal measures will continue to sustain stability in the foreign exchange market, at least in the short term.

Similarly, Cordros Capital Limited projects that foreign portfolio inflows will strengthen the naira outlook, buoyed by carry trade opportunities and growing investor confidence. The firm also highlighted that non-oil export growth and limited incentives for currency speculation will reinforce FX stability from domestic sources in the coming weeks.

Source: Punch