The Central Bank of Nigeria (CBN) has injected $148 million into the Nigerian Foreign Exchange Market (NAFEM).
This initiative saw 29 authorized dealers participate in transactions conducted on July 22 and 23, 2024.
The CBN sold the dollar at exchange rates ranging between N1470.00/$ and N1510.00/$. According to a statement from Hakama Sidi Ali, acting director of the Corporate Communications Department, the bank is committed to reducing market volatility and supporting the naira.
The CBN governor has emphasized the bank’s dedication to closing the supply gap and maintaining market stability.
This intervention follows previous dollar sales, including $122.67 million to 46 dealers earlier this month and $106.5 million to 29 dealers last week.
Despite these efforts, the naira has continued to face challenges. It recently fell to a four-month low, closing at 1,603.80 to the dollar, and traded between N1,650 and N1,680 in the black market.
The naira’s decline has made it the second worst-performing currency globally in 2024, as reported by Bloomberg.
The ongoing depreciation of the naira is driven by several factors, including increased demand for foreign currency and external economic pressures.
The CBN’s interventions are part of broader strategies to stabilize the economy and reassure investors.
The currency’s volatility impacts various sectors, affecting import costs and consumer prices. As such, the CBN’s commitment to stabilizing the market is crucial for economic recovery and growth.
While the CBN’s dollar injections are intended to provide short-term relief, long-term stability will require sustained efforts and potentially additional policy measures.
Analysts suggest that ongoing monitoring and strategic adjustments will be necessary to achieve lasting market equilibrium.