Naira Strengthens Against Dollar as CBN Intervenes

The naira appreciated against the United States dollar in the official foreign exchange market, moving from N1,329.2129 to N1,328.2154 per dollar, following an intervention by the Central Bank of Nigeria (CBN) that injected fresh dollar liquidity. The CBN sold $151 million to eligible deposit banks to enhance dollar supply and support smoother transactions in the foreign exchange market.

Trading during the session occurred within a range of N1,322.71 to N1,333 per dollar, indicating relative stability despite ongoing demand for foreign currency. The CBN's intervention is significant for businesses, importers, and investors, as dollar availability impacts import costs and consumer prices.

The number of dollar transactions rose sharply from 86 to 234, reflecting increased activity among authorized market participants. Nigeria's external reserves, approximately $54.34 billion, may provide the CBN with the capacity to support the FX market further.

Analysts predict that the naira's sustainability will depend on continued foreign exchange inflows and market liquidity.