Naira Sees Uptick after CBN’s $181m FX Sales to Banks

The naira posted a moderate appreciation against the US dollar this week, gaining N8.62 or 0.01% week-on-week to close at N1,501.08 per dollar in the official market.

This improvement was supported by the Central Bank of Nigeria’s (CBN) foreign exchange sales to banks, which totalled $181.25 million during the week.

Similarly, in the parallel market, the naira strengthened by 0.04% week-on-week, trading at an average of N1,495 per dollar.

This reflects the impact of the CBN’s recent FX policies and interventions aimed at stabilising the local currency.

In the crude oil market, data from the CBN signalled an uptick in demand for Bonny Light crude, pushing prices higher by 1.56% week-on-week to $78.24 per barrel on Friday, compared to $77.04 per barrel in the previous week.

Meanwhile, Nigeria’s foreign exchange reserves experienced a slight depletion, declining by 0.78% week-on-week to $38.73 billion as of February 20, down from $39.04 billion a week earlier..

In the coming week, the naira is expected to trade within a relatively stable range, provided there are no significant market distortions.

Market dynamics are projected to continue to shape the supply and demand for the dollar, influencing the local currency’s performance across various exchange segments.