SAT FEB 15 2025-theGBJournal| The naira fell by 0.5% to N1,509.70/USD at the Nigerian Foreign Exchange Market (NFEM) even as the Central Bank of Nigeria (CBN) intervened, selling c. USD66.45 million to authorized dealers.
Notably, the country’s FX reserves maintained its downward trend, declining by USD307.19 million w/w to USD39.10 billion (13 February).
In the forwards market, the naira rates decreased across the 1-month (-0.3% to N1,554.01/USD), 3-month (-0.6% to N1,633.36/USD), 6-month (-1.0% to N1,749.31/USD) and 1-year (-1.1% to N1,948.97/USD) contracts.
In the near term, we expect FX market liquidity to remain strong, driven by inflows from foreign portfolio investors (FPIs), supported by attractive carry trade opportunities and a relatively stable naira.
However, global uncertainties, including the ripple effects of US trade tariffs, pose a significant risk.
Additionally, we anticipate that the CBN will maintain its interventions, particularly during periods of liquidity shortages. As a result, we foresee the naira holding steady in the short term.
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