Naira Bounces Back, Appreciates in Value by N51.34 Against US Dollar After CBN’s Intervention

• The Nigerian currency, the naira, has recorded a good performance at the official foreign exchange market
• Data shows that the Naira increased in value by N51.38 against the US dollar at the investors' and exporters' window
• This followed the Central Bank of Nigeria's promise to continue intervention in the forex markets to help the naira

The Naira appreciated against the US Dollar in the official foreign exchange market on Wednesday, July 26, 2023.

The market reacted positively to news from the Central Bank of Nigeria that it will continue its intervention in the forex market.

Speaking with journalists at the end of the 2-day Monetary Policy Committee meeting on Tuesday, July 25, 2023, the acting Governor, Folashodun Shonubi said:

"The role of the central bank is to intervene and keep the market at a fairly stable level. We have our views as to what that level is, and as the market continues to oscillate around that level, if there's a need for us to intervene either by buying or selling, that's the role of the central bank, and we will continue."

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"We have started intervening, and we have been doing it for a while, and we will continue to intervene to bring the market to the levels that we believe we should be right now."

Naira exchange rates

Data obtained from FMDQ securities that tracked the naira performance at the investors and exports window shows the naira closed at N740.08/$1 on Wednesday.

This represents a massive N51.34 or 6.5 percent improvement when compared to Tuesday's rate of N791.42/$1.

During trading on Wednesday, there was an increase in liquidity thanks to CBN intervention as the market FX trades rose by 197.3 percent or $101.73 million to $153.28 million from $51.55 million on Tuesday.

Naira to dollar black market rate

It was a mixed performance for the naira at the unofficial markets.

Data shows the naira to dollar rate in the Peer-2-Peer (P2P) window improved by N11 to sell at N850.00/$1, in contrast to the previous day’s rate of N861.00/$1.

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Exchange rate gap between official and black markets widens above N100 as CBN's convergence plan gets tougher

But in the parallel market, the Naira lost N3 against the American Dollar to trade at N870/$1 compared with the preceding session’s N867/$1.

CBN speaks on license status of 2,698 BDCs as Naira falls again

The Central Bank of Nigeria has responded to reports that it withdrew over 2,000 Bureau de Change operators' licenses

The reports of withdrawal come amid the continued depreciation of the naira at the official and black markets

The CBN and the Bureau De Change Operators of Nigeria spoke with Legit.ng to set the records straight

Source: Legit.ng