In a determined bid to stabilize the naira, the Central Bank of Nigeria (CBN) injected an additional $150 million into the foreign exchange market at the start of the week. The intervention, aimed at easing pressure on the local currency, reflects the apex bank’s ongoing commitment to ensuring liquidity and restoring investor confidence in Nigeria’s macroeconomic environment.
Analysts believe sustained interventions like this could help anchor the naira and foster long-term FX market stability, though they warn that structural reforms and export growth are also essential for lasting impact.
Meanwhile, the Nigerian Exchange (NGX) opened the week on a bearish note, with the All-Share Index contracting as equities investors lost over N21 billion to sell-offs across major counters. Market sentiment was dampened by cautious trading and continued capital flight toward safer assets.
In the corporate arena, MTN Nigeria Plc has emerged as a stock to watch despite its recent financial strain. Analysts are forecasting a strong rebound by 2025 for the telecoms giant, projecting double-digit upside potential. This optimism persists despite the company’s negative shareholders’ funds, largely attributed to massive forex-related losses. A return to profitability is anticipated as FX pressures ease and operational efficiencies improve.
The unfolding dynamics—marked by monetary defense of the naira, declining investor appetite for equities, and hopeful projections for key corporates—highlight the complex but gradually stabilizing terrain of Nigeria’s financial market.
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