The Central Bank of Nigeria (CBN) has injected an additional $37 million into the foreign exchange (FX) market by purchasing an equivalent amount in naira from banks. This move is part of the CBN’s ongoing efforts to enhance liquidity in the FX market.
Despite expectations that the CBN will continue its interventions by selling US dollars to banks, the outlook for the naira in 2025 remains uncertain. Several investment banks have expressed bearish sentiments about the exchange rate, with varying projections indicating a potential further decline in the value of the naira.
Bizwatch Nigeria observed that investment banking firms are adding disclaimers to their naira forecasts, citing the potential impact of Nigerian refinery upgrades. These upgrades are anticipated to reduce the reliance on imported fuel and mitigate inflationary pressures.
On Tuesday, the CBN intervened in the FX market by selling $37.1 million at rates ranging between N1,530 and N1,540. This aggressive intervention aims to curb the negative trajectory of the exchange rate. Consequently, the naira settled at N1,538.50 per US dollar in the official market. Pre-New Year FX trading data revealed a stable currency market, bolstered by improved liquidity.
Foreign exchange transactions during the session occurred within a range of N1,520.00 to N1,550.00 per US dollar. Overall, the naira appreciated by 13 basis points, closing at N1,535.00 against the greenback on Tuesday. Concurrently, Nigeria’s external reserves rose to approximately $40.9 billion, according to CBN data.
In the commodities market, oil prices saw a slight uptick, with Brent crude trading at $74.39 per barrel and the U.S. benchmark, West Texas Intermediate (WTI), at around $71.16 per barrel. The increase was attributed to positive demand expectations from China and the United States.
Conversely, gold prices declined amid low trading volumes as investors awaited new market drivers. Factors under consideration include upcoming U.S. economic data that could influence the Federal Reserve’s interest rate outlook for 2025 and policy directions from incoming U.S. President Donald Trump. Gold traded at approximately $2,603.53 per ounce.
 has injected an additional $37 million into the foreign exchange (FX) market by purchasing an equivalent....){kind=link}