Naira Stable as CBN’s Dollar Sales Hit Weekly High

The Nigerian Naira traded relatively flat in the official foreign exchange (FX) market on Tuesday, even as the Central Bank of Nigeria (CBN) recorded its highest dollar sales volume in the past week.

Data from the Nigerian Foreign Exchange Market (NFEM) showed the Naira depreciated slightly by 0.2 percent, closing at N1,602.63 against the dollar, compared to N1,599.93 last Thursday before the Easter break. In the parallel market, the Naira remained steady at N1,610 per dollar.

Notably, the NAFEM window witnessed a significant surge in dollar inflows, reaching $1.42 billion, a considerable increase from the $847 million recorded the previous week, according to Coronation Merchant Bank Research. The CBN emerged as the largest contributor to this inflow, accounting for a substantial 50.60%.

This increased dollar supply, largely driven by the CBN’s intervention, appears to be playing a crucial role in maintaining the Naira’s stability despite some marginal depreciation in the official window. Market participants are closely watching the CBN’s continued strategies to manage FX liquidity and stabilize the local currency.