Naira to maintain stability in CBN intervention

The Naira is expected to maintain stability this week and beyond as the Central Bank of Nigeria (CBN) continues to intervene in the currency market (FX).

The CBN had ordered the operators of the Office of Change (BDCS) to buy $ 25,000 weekly of the authorized dealers in the rates of the Nigerian currency market (NFEM).

In a circular signed by WJ Kanya, interim director of the Department of Commerce and Exchange, the CBN declared that in addition to the anterior circular, TED/FEM/FPC/001/030 dated December 19, 2024, which are temporarily granted access to BDC to buy currencies of foreigners of the authorized distributors in the national market for foreign exchange (NFEM) implement. These guidelines include a weekly purchase limit of $ 25,000 per BDC of authorized dealers.

Monthly, La Naira closed an apartment since the dollar was summoned at N1,500 on Friday, February 2025, the last day of negotiation of the month compared to N1,499 cited on February 3, 2025, the first day of negotiation of the month, in the Nigerian foreign division market (NFEM), according to the data provided by the CBN.

In the parallel market, popularly called Black Market, La Naira appreciated N1,505 on Friday, February 28, 2025, marking 6.2 percent over N1,599 per dollar exchanged at the beginning of the month, data from street merchants and online data collection platform have been revealed.

“In March, we anticipate that Naira will maintain its positive performance in the FX segments, backed by the continuous dollar supply of the CBN to the exchange office (BDCS) and deposit money banks (DMB), provided that there are no adverse market clashes,” said Afrinvest Securities Limited analysts.

Against other currencies, such as the European euro, the Naira lost N27.31 in a month when the currency closed to N1,552.93 for one euro on the last negotiation day of February 2025, losing 1.8 percent of N1,525.62/Euro cited at the beginning of last month, the CBN data showed.

In a daily negotiation, La Naira was strengthened against the euro, winning N70 since one euro was cited in N1,500 on Friday compared to N1,570 cited Thursday in the black market.

The Naira depreciated against pounds at N42.53 or 2.3 percent in a month in the official FX market. Pounds was summoned in N1,838.15 on the negotiation day of February 2025, compared to N1,880.68 per pound cited on Friday 28, 2025, the last negotiation day of the month, indicated the CBN data.

In the black market, the Naira was seen against the pounds by 2.6 percent day by day to N1,850 per Libra on Friday 28, 2025 of N1,900/Libras on Thursday.

The Canadian dollar closed to N1,059 on Friday 28, 2025, the last day of negotiation in February, the same rate that closed the day before in the black market.

Nigeria’s external reserves decreased by $ 1.18 billion in February, losing 2.98 percent to $ 38.41 billion as of February 28, 2025 from $ 39.59 billion registered at the beginning of the month, as shown by the CBN data.

According to an Afrinvest report, the decrease may be linked to CBN efforts to stabilize the Naira, particularly through the resumption of payments for the verified part of the slope of $ 7.0 billion currencies. In the official market, the NAIRA hesitated 1.7 percent of m/m against the Back Green to close at N1,500.15/$ 1.00. On the contrary, the parallel market rate appreciated 8.5 percent at N1,490.0/$ 1.00, the report said.