Naira gains in value as CBN sells over $300m to banks in two weeks

Business

Central Bank of Nigeria (CBN) has sold over $300m to Deposit Money Banks in the last two weeks amid desperate efforts to stabilise the naira-dollar exchange rate.

The naira appreciated against the dollar to 1,582/$ at the close of trading activities at the official market on Monday.

According to data obtained from FMDQ securities, the increase was N12 or 0.75 per cent from N1,594 recorded at NAFEM on Friday.

At the black market, the naira slipped slightly to between N1,555/dollar and N1,560/dollar, following market sentiment.

The Naira currency, which peaked at a lowest of 1,900/dollar on Thursday rebounded to 1,500/dollar on Friday, following EFCC raids on currency speculators.

However, the local currency depreciated slightly against the dollar at N1,555/$ on Monday evening,  according to data collated from some street traders.

The rise in naira value was due to market sentiment as the EFCC continued to clamp down on black market operators across Abuja and Lagos.

The dollar sales came on the heels of rapid depreciation of the naira in recent weeks. As of January 1, 2024, the naira began the year at N891/$, but has since taken multiple beatings at the official Nigeria Autonomous Foreign Exchange Market and parallel markets.

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