Analysts see CBN’s forex intervention stables Naira to the Dollar as foreign reserves hit $48b

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The naira will remain stable at both the official and parallel markets, with the rise in foreign reserves to $48 billion and the consistent dollar interventions by the Central Bank of Nigeria (CBN), analysts have said.

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Analysts at Afrinvest, an investment and research firm, said with oil prices above $70/barrel and the look-good state of the foreign reserves, the outlook on exchange rate remains positive.

They said the apex bank will continue to support the naira through consistent dollar injections.

At the official market, the naira traded flattish opening at N305.90/$1 on Monday, a five kobo appreciation from the previous Friday and closed at N305.85/$1 Thursday, appreciating two basis points or five kobo week-on-week. Similarly, the naira traded flat at the parallel market opening and closing the week at N362/$1.

CBN Director, Banking Supervision, Abullahi Ahmad, confirmed the reserves status during the last Bankers’ Committee meeting in Lagos.

In an emailed report to investors, Afrinvest explained that in its unflinching commitment towards stabilising the local currency against the greenback, the CBN had last week injected $210 million into the system through the Wholesale Secondary Market Intervention Sales (SMIS) window. Hence, rates across all segments of the market remained relatively stable in the week.

“At the official market, the naira traded flattish opening at N305.90/$1 on Monday, a five kobo appreciation from the previous Friday and closed at N305.85/$1 Thursday, appreciating two basis points or five kobo week-on-week. Similarly, the naira traded flat at the parallel market opening and closing the week at N362/US$1,” it said.

At the Investors and Exporters’ Window (I&E) FX window however, the naira experienced slight fluctuations during the week appreciating on two of four trading days to buck the flattish trend in other markets.

Last Monday, the naira depreciated

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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