Naira Rebounds After CBN’s Intervention

Yesterday, the naira appreciated by 2.35 per cent against the United States dollar after the Central Bank of Nigeria (CBN) sold dollars to prop up the value of the nation’s currency.

The naira closed at N165.90 to the dollar compared with the N169.90 to the dollar the previous day.

CBN Deputy Governor (Economic Policy), Dr. Sarah Alade disclosed to Bloomberg that the central bank intervened in the market to defend the naira after it plunged to an all-time low amid a drop in oil prices.

“We are in the market now. We haven’t abandoned the market. We will continue to defend the currency,” she said.

The naira had touched new intra-day lows of N173.02 on Friday amid demand for dollars, partly from foreign investors unnerved by falling oil prices exiting Nigeria and partly from domestic importers worried about the risk of currency devaluation.

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