In an effort to boost liquidity in FX market, the Central Bank of Nigeria (CBN) spent additional $37 million in exchange for equivalent amount in naira from banks.
Despite expectation that the authority will keep at selling US dollar to banks, the naira outlook remains uncertain in 2025. A number of investment banks appear bearish on exchange rate outlook at different degree of projections that suggest the naira would fall further.
On Tuesday, the CBN intervened in the FX market offering $37.1 million between the rates of N1,530 to N1,540, continuing its aggressive intervention sales to check exchange rate negative movement.
The Naira against the US dollar to settle at N1,538.50 in the official market. Pre-new year FX trading data showed the currency market demonstrated stability with improved liquidity.
FX transactions occurred within the range of N1,520.00 and N1,550 per US dollar. Overall, the Naira appreciated by 13 basis points, closing at N1,535.00 per greenback on Tuesday. At the same time, the gross balance in the external reserves climbed to about $40.9 billion.