The Central Bank of Nigeria (CBN) was said to have sold dollars directly to the market thereby halting a five-day decline as the Naira rose on Friday.
The sale, which is outside of the CBN’s regular currency auctions, moved the currency up 0.9 percent and traded 0.6 percent stronger at 158.65 per dollar by 3:06 p.m. in Lagos, its biggest gain on a closing basis since October 4. The naira has dropped 1.5 percent this year.
“There was intervention from the central bank,” Tega Adeda, a foreign-exchange trader at Stanbic IBTC Holding Co. (STANBIC), said without specifying the amount sold.
“There was a lot of corporate demand” and the regulator is trying to stabilize the market, he said.