Naira has crashed massively to N1,629/$1 at official market despite CBN’s $200 million intervention.
NewsOnline Nigeria reports that the Naira fell sharply on Monday, closing at N1,629.00/$1 in the official Foreign Exchange Market.
This is according to the latest data published by the Central Bank of Nigeria (CBN).
This represents a notable depreciation from N1,600.00/$1 on Friday and N1,569.00/$1 on Thursday, highlighting increasing pressure on the domestic currency despite recent efforts by the CBN to stabilize the forex market.
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In the parallel market, or black market, the naira traded more favorably.
Sources informed NewsOnline Nigeria that the currency exchanged at N1,555/$1 on Monday, slightly stronger than the N1,560/$1 observed on Friday.
A Bureau De Change (BDC) operator in Wuse Zone 4, Abuja, confirmed the Monday rate, noting a slight improvement in dollar availability compared to the previous week.
CBN Steps Up FX Market Interventions
In response to the continued depreciation, it was gathered that the CBN sold an estimated $200 million at various official exchange rates on Monday.
- This move followed an earlier $197 million intervention on Friday and a cumulative $124 million disbursed last week.
- These back-to-back interventions indicate a more aggressive approach by the apex bank in attempting to curb speculative activity and ease demand pressures in the FX market.
“The central bank’s actions suggest it is committed to defending the naira amid rising demand, but the impact has been limited so far due to broader macroeconomic and liquidity constraints,” a currency analyst familiar with the development told Newsmen.
Equities Market Tumbles in Tandem
In a related economic development, the Nigerian stock market witnessed a significant pullback on Monday.
- The Nigerian All-Share Index (NGX ASI) plummeted by 1,295.02 points to close at 104,216.87, a 1.23% decline from the previous session’s 105,511.89. This marks the steepest daily loss since mid-January, when the index dropped by 1,526.1 points.
- The downturn was driven by broad-based losses across key equities, with at least four companies recording 10.00% drops in their share prices. Despite the bearish sentiment, the total trading volume increased significantly to 444.1 million shares, up from 348.1 million shares in the prior session.
- However, investor confidence appeared to wane, as total market capitalization dipped below the N66 trillion mark, ending at N65.4 trillion across 15,690 transactions, compared to N66.1 trillion in the previous session.
The continued slide of the naira at the official market, despite heightened CBN interventions, signals persistent challenges in Nigeria’s FX liquidity and structural demand-supply mismatch. While the black market has shown slightly more stability, the disparity between both markets remains a concern for investors and import-dependent businesses.
