Nigeria's Naira Holds Firm at N1,367/$ Amid Central Bank Intervention

The Nigerian naira has maintained its value at N1,367 per dollar in the foreign exchange market, thanks to sustained interventions by the Central Bank of Nigeria (CBN). The CBN's efforts have kept the US dollar in check, despite increased central bank interventions and automatic supply.

Nigeria's external reserves stand at around $52.5 billion, covering at least nine months of imports, providing a robust backing for the naira. The CBN's defense strategies include direct dollar sales to BDCs and other dealers, which have helped curb volatility in the market.

The Cash Reserve Ratio is set at 45%, aimed at controlling naira liquidity in the Nigerian banking industry. However, maintaining the naira within the N1,350-$1,375 range depends on Nigeria's ability to sustain high gross FX reserves, supported by the CBN's defense strategies.