In a determined bid to shield the naira from relentless pressure in the foreign exchange market, the Central Bank of Nigeria (CBN) injected a hefty $635 million into the banking system over the course of a week. This massive intervention was aimed at addressing the surging demand for the US dollar and stabilizing the local currency, which has been on a turbulent trajectory.
Despite the aggressive push by the apex bank—spanning five consecutive days of FX supply—the naira continued its downward slide, shedding 2.35% of its value against the dollar. By the end of the week, the currency closed at N1603/$, further stoking concerns among businesses, investors, and consumers who are grappling with inflationary pressures and the rising cost of imports.
This move is part of the CBN’s broader strategy to manage exchange rate volatility and instill confidence in the currency market. However, the outcome underscores the depth of the challenges facing Nigeria’s forex ecosystem, including speculative attacks, limited dollar inflows, and a widening gap between demand and supply.
Analysts have warned that while short-term interventions may temporarily ease pressure on the naira, sustainable stability requires a mix of monetary discipline, increased exports, and investor confidence. The $635 million support package, though significant, is a stark reminder of the scale of Nigeria’s FX crisis—and the difficult road ahead for policymakers seeking to anchor the economy on a more stable footing.
Stay informed, Stay ahead with The Ameh News
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
