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- About $669 cardinal was spent connected overseas speech (FX) interventions by the Central Bank of Nigeria
- This was done to forestall further devaluation of the naira, according to a study by AIICO Capital Limited
- The inclination coincides with declining dollar inflows and rising offshore overseas speech demand
Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
In the archetypal 4th of 2025, the Central Bank of Nigeria (CBN) made overseas speech (FX) interventions totaling astir $669 million.
Source: Getty Images
The $668.8 cardinal successful dollar sales, according to a study by concern steadfast AIICO Capital Limited, were made to support the naira from further depreciation.
This comes arsenic offshore request for overseas speech is rising and dollar inflows are decreasing.
Stocks dropped astatine Monday's opening, indicating that President Donald Trump's sweeping tariffs are besides upsetting planetary marketplace stability.
The study besides stated that the CBN ordered Bureau de Change (BDC) operators to bargain $25,000 from authorized trader banks astatine the authoritative speech complaint successful an effort to stabilize the parallel market.
The nation's external reserves suffered contempt these measures, falling from a three-year precocious of $43 cardinal arsenic a effect of indebtedness repayment commitments and ongoing dollar income to support the naira.
However, continued request successful the Nigerian Foreign Exchange Market (NFEM) caused the section currency to diminution successful March 2025, putting it nether a batch of strain.
Over the people of the month, the naira mislaid 2.97% of its value, falling from N1,492.49/$ to N1,536.82/$, adjacent though the CBN had invested $668.8 cardinal successful dollars.
The marketplace opened the period astatine N1,510/$, with request remaining elevated—particularly from overseas portfolio investors and section corporations. The parallel marketplace reflected a akin strain, with the naira falling by N43.50 to adjacent astatine N1,536.00/$.
The CBN's actions temporarily accrued mid-month liquidity, but request inactive exceeded supply. The naira was inactive nether unit astatine the decision of the quarter, contempt flimsy advances and much dollar sales.
At the NFEM window, the currency showed a flimsy depreciation connected a quarterly basis, and outer reserves fell to $38.31 billion.
Source: Getty Images
The authoritative and parallel marketplace windows person drifted further isolated arsenic the naira deed a five-month debased successful the Nigerian Foreign Exchange Market (NFEM).
On Friday, April 4, 2025, the naira depreciated to N1,600 per dollar, down from N1,569 it traded the erstwhile day.
The past clip the naira traded adjacent that complaint was connected December 3, 2024, erstwhile it exchanged astatine N1,608 per dollar.
JP Morgan predicts caller naira speech rate
Legit.ng reported that JP Morgan, the American concern banker, has said the alteration successful the enactment of the Nigerian National Petroleum Company Limited (NNPC) and the merchandise of Nigeria’s nett overseas speech reserves (NFER) are changing the tide successful the market.
Amid expanding planetary uncertainty, JP Morgan upheld a affirmative standing connected the Nigerian market, stating it is insulated from US slowdowns.
The institution disclosed this successful its enactment to investors connected Wednesday, April 2, 2025, stating that the Nigerian marketplace provided capable complaint extortion to easiness imaginable FX losses.
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Source: Legit.ng
