FRI APRIL 18 2025-theGBJournal| The naira gained 1.1% w/w to N1,599.7 against the U.S dollar supported by the CBN’s strong intervention – selling c. 280.00 million dollars to authorised banks.
Meanwhile, gross FX reserves declined for the fifth consecutive week by USD111.21 million w/w to USD37.89 billion (April 16).
In the forwards market, the naira rates appreciated across the 1-month (+1.5% to N1,642.03/USD), 3-month (+0.8% to N1,720.49/USD), 6-month (+1.6% to N1,802.37/USD) and 1-year (+1.6% to N1,979.27/USD) contracts.
The naira is likely to remain under pressure, weighed down by weak capital inflows amid persistent global uncertainties from the trade war and concerns over a potentially deteriorating trade balance due to lower oil prices.
Nonetheless, sustained CBN interventions are expected to help contain the risk of sharp depreciation in the near term.
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