To protect the local currency, the Central Bank of Nigeria (CBN) intervened in the foreign exchange market. on Thursday in an attempt to stop the depreciating value of the naira.
In the foreign exchange market, the apex bank sold authorized dealer banks $39 million at rates ranging from N1570 to N1580 per US dollar.
In an effort to solidify its willing buyers, willing sellers position, the CBN refrained from selling foreign exchange to banks. On the other hand, supply-and-demand pressures have severely hurt the naira.
The demand for US dollars has increased on a sustainable basis, surpassing that of the naira, pushing the exchange rate to an unfavorable level. in a nation where imports are more important.
Seeing that the naira has no strength to survive the onslaught in the forex market, the CBN reversed itself with weekly FX sales to authorised dealers. At the close of the trading session, the naira settled at N1570 in the official window per US dollar.
