The naira will remain stable at both the official and parallel markets, with the rise in foreign reserves to $48 billion and the consistent dollar interventions by the Central Bank of Nigeria (CBN), analysts have said.
Analysts at Afrinvest, an investment and research firm, said with oil prices above $70/barrel and the look-good state of the foreign reserves, the outlook on exchange rate remains positive.
They said the apex bank will continue to support the naira through consistent dollar injections.
At the official market, the naira traded flattish opening at N305.90/$1 on Monday, a five kobo appreciation from the previous Friday and closed at N305.85/$1 Thursday, appreciating two basis points or five kobo week-on-week. Similarly, the naira traded flat at the parallel market opening and closing the week at N362/$1.
CBN Director, Banking Supervision, Abullahi Ahmad, confirmed the reserves status during the last Bankersโ Committee meeting in Lagos.
In an emailed report to investors, Afrinvest explained that in its unflinching commitment towards stabilising the local currency against the greenback, the CBN had last week injected $210 million into the system through the Wholesale Secondary Market Intervention Sales (SMIS) window. Hence, rates across all segments of the market remained relatively stable in the week.
โAt the official market, the naira traded flattish opening at N305.90/$1 on Monday, a five kobo appreciation from the previous Friday and closed at N305.85/$1 Thursday, appreciating two basis points or five kobo week-on-week. Similarly, the naira traded flat at the parallel market opening and closing the week at N362/US$1,โ it said.
At the Investors and Exportersโ Window (I&E) FX window however, the naira experienced slight fluctuations during the week appreciating on two of four trading days to buck the flattish trend in other markets.
Last Monday, the naira depreciated
