CBN injects $148 million into forex market amid Naira depreciation

The Central Bank of Nigeria (CBN) has intervened in the foreign exchange market, injecting $148 million into the system.

The move comes amid increasing pressure on the naira, which has been steadily depreciating in recent times.

The central bank in a statement released on Friday disclosed that the funds were disbursed to 29 authorized dealers on Monday, July 22 and Tuesday, July 23, 2024. The exchange rate for the transactions ranged between N1,470.00 to N1,510.00 per dollar.

The statement read, “The Central Bank of Nigeria sold a cumulative sum of US$148,000,000.00 in the Nigerian Foreign Exchange Market to Authorized Dealers on 22nd and 23rd July 2024.

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“Foreign currency sales were made to 29 Authorized Dealer banks at an exchange rate of 1470.00/US$1-1510.00/US$1.”

This is the latest in a series of interventions by the CBN aimed at stabilizing the foreign exchange market. Just two weeks ago, the bank sold $122.67 million to 46 authorized dealers. In addition, the bank announced the sale of $20,000 to each Bureau of Exchange (BDC) operator at an exchange rate of N1,450 per dollar.

Despite these efforts, the naira continues to weaken, trading above N1,600 per dollar in the official market. The continued depreciation has raised concerns among businesses and individuals, as it increases the cost of imports and fuels inflation.

The CBN intervention is a short-term measure to address immediate liquidity challenges in the foreign exchange market.

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