SAT MARCH 15 2025-theGBJournal| The official FX rate fell broadly on Friday by 1.3% to N1,537.50/USD as the Central Bank of Nigeria’s (CBN) robust intervention helped mitigate a steeper devaluation amid the resurgence of demand pressures.
The naira also weakened to N1,590/$ in the black market due to tight BDC supply.
The CBN sold a total of USD360.00 million to authorized dealers.
Meanwhile, gross FX reserves increased by USD12.06 million w/w to USD38.36 billion (12 March), after 9 consecutive weeks of decline.
In the forwards market, the naira rates decreased across the 1-month (-0.6% to NGN1,577.80/USD), 3-month (-0.8% to N1,654.10/USD), 6-month (-0.7% to N1,764.98/USD) and 1-year (-0.8% to N1,965.95/USD) contracts.
Concerns about oil receipts underpinned by lower oil prices are likely to temper net FX inflows from FPIs, likely sustaining pressure on the naira.
Nonetheless, CBN’s sustained market intervention and reduced market distortions are expected to prevent a sharp depreciation of the naira.
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