SAT JAN 25 2025-theGBJournal| The naira climbed 1.1% to N1,531.20 against the dollar at the Nigerian Foreign Exchange Market (NFEM), following the Central Bank of Nigeria’s (CBN) intervention, selling c. USD113.85 million to authorised dealers.
Following these interventions, the FX reserves level declined by USD303.95 million w/w to USD39.99 billion (23 January).
In the forwards market, the naira rates decreased across the 1-month (-0.1% to N1,591.41/USD), 3-month (-0.8% to N1,667.93/USD), 6-month (-1.6% to N1,779.33/USD) and 1-year (-1.4% to N1,962.32/USD) contracts.
In the short term, while we expect FX demand pressure to remain intact, analysts at Cordros Research tells theG&BJournal they believe sustained CBN intervention and increased transparency and market efficiency from the adoption of the Electronic Foreign Exchange Matching System (EFEMS) will support naira stability.
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