CBN Injects $151 Million, Boosts Naira's Value Against Dollar
The Nigerian naira has strengthened against the US dollar in the official foreign exchange market after the Central Bank of Nigeria (CBN) injected fresh liquidity into the system.
The local currency appreciated to N1,328.2154 per dollar at the Nigerian Foreign Exchange Market (NFEM), improving from N1,329.2129/$ recorded in the previous session.
The CBN's sale of $151 million to eligible deposit money banks supported the naira's gain, which came as a relief after recent pressure on the currency and was aimed at boosting dollar supply to financial institutions and supporting smoother transactions in the FX market.
Nigeria's external reserves provide support for the CBN's intervention, with reported reserves of about $54.34 billion giving the central bank additional room to support the FX market when necessary.