The naira, on Wednesday, broke a five-day losing streak against the dollar on the official market, closing at N1,608.73/$1 compared to N1,621.12 per dollar, on Tuesday, data from FMDQ shows.
The local currency also strengthened against the greenback on the parallel market yesterday, rising to N1,600 per dollar compared to N1,610/$1 on Tuesday.
Analysts note that until its rebound yesterday, the naira had been weakening against the dollar as a result of a sharp rise in demand for forex, occasioned by summer travels.
The naira weakness made the Central Bank of Nigeria (CBN) to step up its interventions in the forex market in recent weeks.
In a statement it issued last Friday, for instance, the CBN announced that it sold foreign currencies worth $148 million in the Nigerian foreign exchange market (NFEM) to 29 authorised dealers on July 22 and 23.
The statement said: “The Central Bank of Nigeria (CBN) sold a cumulative sum of $148 million in the Nigerian Foreign Exchange Market (NFEM) to Authorised Dealers on July 22 and 23, 2024....[CONTINUE READING HERE ▶▶]
“The sale of foreign exchange (Fx) was to 29 Authorized Dealer banks at an exchange rate of 1470.00/$11510.00/$1.”
The CBN also said it bought $2 million from one authorised dealer bank at the rate of N1,505.00/$. “The value dates for all the transactions held on July 22, 2024, was T+0, while that of July 23, 2024, was T+0,” the regulator said.
July 12, the CBN said it sold foreign currencies worth $122.67 million to 46 authorised dealers in two days to ensure stability and reduce FX market volatility.
Between July 17 and July 18, the CBN said foreign currencies worth $106.5 million were sold to 29 authorised dealer banks. The regulator said it would continue to support various segments of the official market with liquidity in the coming weeks.