CBN Maintains Steady FX Support to Stabilise Naira Value
The Central Bank of Nigeria (CBN) continues its strategic support for the naira, reinforcing stability in the foreign exchange market with $30 million in sales to authorised dealer banks. This recent move, part of the CBN’s ongoing intervention strategy, aligns with the bank’s efforts to manage volatility and support the national currency amid heightened demand pressures.
This week alone, the CBN’s FX interventions have totalled $77 million, reflecting a clear commitment to addressing fluctuations in the naira’s value. Wednesday’s sale at ₦1,630 per dollar marked a proactive step, with the bank consistently providing liquidity through auctions to ensure that the official exchange rate remains supported.
Amid rising demand, the CBN’s measured approach aims to alleviate daily dollar shortages in the official window. Market analysts anticipate further interventions, especially given recent trends where the bank conducted three auction sales last week, releasing $148 million into the system. This proactive approach has become essential in stabilising the naira, which has faced an 8% depreciation in the official market since October.
The CBN’s intervention strategy highlights its resilience in managing Nigeria’s foreign exchange demands. By responding steadily and pragmatically to evolving market conditions, the bank underscores its dedication to cushioning the naira against volatility. A representative for the CBN commented, “Our actions this week reflect our commitment to FX stability. We remain poised to implement strategies that support exchange rate balance in a sustainable manner.”
As the CBN remains vigilant in its efforts to safeguard the naira’s value, these consistent FX interventions reinforce the bank’s role as a stabilising force within Nigeria’s economic landscape, aiming to bolster confidence and maintain exchange rate equilibrium amidst ongoing global and local challenges. Fidelity Bank’s Strategic Growth Drives Impressive Profits
