CBN injects $148m into FX market amid Naira depreciation

The Central Bank of Nigeria (CBN) has intervened in the foreign exchange market, injecting a sum of $148 million into the system.

This move comes amidst increasing pressure on the naira, which has been steadily depreciating in recent times.

The apex bank, in a statement released on Friday, disclosed that the funds were disbursed to 29 authorized dealers on Monday, July 22, and Tuesday, July 23, 2024. The exchange rate for the transaction ranged from N1,470.00 to N1,510.00 per dollar.

The statement read, “The Central Bank of Nigeria sold a cumulative sum of US S148,000,000.00 in the Nigerian Foreign Exchange Market to Authorised Dealers on July 22 and 23, 2024.

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“The sale of foreign exchange was to 29 Authorized Dealer banks at an exchange rate of 1470.00/US$1-1510.00/US$1.”

This is the latest in a series of interventions by the CBN aimed at stabilizing the foreign exchange market. Just two weeks ago, the bank sold $122.67 million to 46 authorized dealers. Additionally, it announced the sale of $20,000 to each Bureau de Change (BDC) operator at the rate of N1,450 per dollar.

Despite these efforts, the naira has continued to weaken, trading above N1,600 to the dollar in the official market. This ongoing depreciation has sparked concerns among businesses and individuals alike, as it drives up the cost of imports and fuels inflation.

The CBN’s intervention is a short-term measure to address the immediate liquidity challenges in the foreign exchange market.

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