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Naira to remain stable next week on CBN sustained intervention

Nigeria’s currency is expected to remain stable next week as the Central Bank of Nigeria (CBN) continued to intervene in the foreign exchange market.

Naira was stable at the weekend as the dollar traded at N460 and N459 on the black market and Bureau De Change (BDC) segment of the foreign exchange market.

The CBN has continued to sell dollars to BDCs since September 7, 2020 when it resumed dollar sales the operators.

The Apex bank sells $10,000 to BDCs twice a week and has sold over $500 million to over 5,000 operators across the country.

The local currency has relatively remained stable at the Investors and Exporters (I&E) forex window due sustained intervention by the CBN.

At the I&E window, Naira appreciated by 0.04 percent as the dollar was quoted at N385.67 as against the last close of N385.83 on Wednesday. Analysts at FSDH research said most participants maintained bids between N380.00 and N386.00 per dollar.

“We expect Naira/USD to remain stable at the Bureau De Change market amid sustained intervention by CBN. However, we expect marginal depreciation at the Investors and Exporters FX Window (I&E FXW) as 12 months forward contract depreciated to N400.25/USD signaling where the free market should trade,” analysts at Cowry Asset Management Limited said.

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