In a strategic maneuver to fortify the naira against the dollar, the Central Bank of Nigeria (CBN) has executed a bold move, infusing more than $300 million into Deposit Money Banks (DMBs) within the past fortnight, resulting in a significant surge in the value of the naira.
This timely intervention, disclosed in a confidential memo circulated among members of the Association of Corporate Treasurers of Nigeria (ACTN) and obtained exclusively by The PUNCH, signifies the CBN’s proactive stance in mitigating the naira’s recent volatility.
Analysts hail this decisive action as pivotal in stabilizing the naira’s value amidst economic uncertainties, providing a much-needed boost to the currency’s strength.
The memo, a beacon of hope amid currency fluctuations, underscores the CBN’s commitment to ensuring liquidity in the foreign exchange market, thereby curbing speculative activities that often precipitate currency devaluation.
According to a snippet of the memo, “The CBN last week sold over $200m to the banks below N1,500/dollar. Similarly, this week, the CBN has on two consecutive days sold FX to banks at rates we understand to be in the $1,450 range.”
This injection of funds comes on the heels of a recent bout of naira depreciation, prompting swift action from the CBN to shore up the currency’s value. Amidst this backdrop, the naira’s resurgence against the dollar signals a potential turning point in currency dynamics.
In a confirmation of the positive trend, an executive committee member of the ACTN, speaking on condition of anonymity, affirmed the authenticity of the memo, emphasizing the importance of keeping members informed amidst currency fluctuations.
This surge in the naira’s value follows recent initiatives by the CBN and the Economic and Financial Crimes Commission (EFCC) to crackdown on currency speculators, underscoring a concerted effort to stabilize the currency and restore market confidence.
As the naira continues its upward trajectory, market sentiment remains buoyant, offering a glimmer of hope for economic stability and resilience in the face of ongoing challenges. Stay tuned for further updates as the situation unfolds, marking a significant milestone in Nigeria’s economic landscape.
