SAT MARCH 01 2025-theGBJournal| The naira remained steady against the US dollar as consistent FX interventions by the Central Bank of Nigeria (CBN) ensured sufficient dollar supply, meeting demand for foreign payment obligations and reducing pressure on the parallel market.
Increased access to foreign currency for business and personal travel allowances through banks has intensified competition with Bureau de Change (BDC) operators, easing demand-driven pressure in the informal market and contributing to exchange rate stability.
Despite the naira’s stability, Nigeria’s external reserves declined to $38.5 billion, reflecting fluctuations in FX inflows, remittances, and crude oil revenue, highlighting potential risks to sustained currency support if inflows remain inconsistent.
Meanwhile, the Naira strengthened on Friday by 0.1% to NGN1,500.15/USD at the Nigerian Foreign Exchange Market (NFEM) despite the absence of CBN intervention, which is attributed to reduced demand pressure amid declining FX reserves.
Cordros Research say they expect FX liquidity to remain robust as a more efficient market and improved market confidence continues to support inflows from autonomous sources.
The CBN is also expected to intervene in periods of high volatility, keeping the naira stable in the near term.
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