SAT FEB 22 2025-theGBJournal| The naira rose by 0.6% to N1,501.08/USD at the Nigerian Foreign Exchange Market (NFEM) as the CBN intervened, selling USD66.80 million to authorized dealers.
The official rate rose to N1,494.03/US$1 according to FMDQ data, while the parallel market tightened at N1,510/US$1.
Also, the FX reserves level declined by US$300.11 million w/w to US$38.74 billion (20 February), marking the 6th consecutive week of decline.
In the forwards market, the naira rates increased across the 1-month (+0.8% to N1,541.90/USD), 3-month (+1.2% to N1,614.50/USD), 6-month (+2.0% to N1,715.15/USD) and 1-year (+2.2% to N1,906.24/US$) contracts.
In line with the CBN’s efforts to sustain carry trade opportunities and boost capital inflows, coupled with its ongoing market interventions, we expect FX liquidity to remain adequate, supporting naira stability in the short term.
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