SAT MARCH 22 2025-theGBJournal| The naira edged up 0.1% to N1,537.65 against the U.S dollar on Friday, as the CBN’s intervention of c. USD230.85 million to authorised dealers helped reduce the volatility of the naira.
Improved dollar supply to banks also helped ease pressure, keeping the parallel market rate steady at N1,585, despite slipping FX inflows.
While market demand pressures have eased, near-term risks to naira volatility persist.
Notably, foreign portfolio investment (FPI) participation in the FX market remains subdued, partly due to concerns over oil receipts amid lower oil prices.
Additionally, the potential for a surge in market demand looms, driven by the Dangote Refinery’s shift to selling petroleum products in U.S. dollars instead of naira following the expiration of the crude-for-naira deal.
Meanwhile, gross FX reserves decreased this week by USD2.65 million w/w to USD38.36 billion (19 March).
In the forwards market, the naira rates increased across the 1-month (+0.1% to N1,5780.82/USD) and 3-month (+0.1% to N1,655.95/USD) contracts, while it decreased across the 6-month (-0.2% to N1,768.61/USD) and 1-year (-1.1% to N1,989.81/USD) contracts.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
