Nigeria: Naira Steadies for Third Day after CBN Debunks Devaluation

CBN defends naira with 7.6bn in five months 1
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In the foreign exchange market, the naira holds its previous position against the United States dollar demand dominance for third days, according to data from the FMDQ Exchange platform.

Flattish trades seen over the last three days signal that there is a balance between the foreign currency (FCY) demand and supply in the official market. The development surfaced after the Central Bank of Nigeria debunked the alleged devaluation of the local currency.

The naira was sold at N464.67 per US dollar at the Investors and Exporters FX window. The naira did not change from its value on Tuesday (June 6, 2023), while the open indicative rate closed at N464.79.

An exchange rate of N476 to the dollar was the highest rate recorded within the day’s trading before it settled at N464.67.

The naira sold for as low as 460 to the dollar within the day’s trading. On Wednesday, a total of 140.31 million dollars was traded at the official Investors and Exporters window.

Conversely, the parallel market experienced a depreciation, falling 0.26% to N757. One-month, three-month, and one-year Dollar/Naira forward rates closed at N477.89, N494.70, and 558.86, respectively, indicating N0.29, N0.37, and N0.32 losses, according to currency traders at Cowry Asset.

Oil gained on Wednesday (June 7, 2023) as supply constraints resulting from Saudi Arabia’s planned output cuts offset demand concerns from the world’s top oil consumers, the US and China.

Elsewhere, gold was trading around $1,964 per ounce (+0.08%), boosted by a weaker US dollar but capped by an increase in US Treasuries as investors searched for clues ahead of the US Fed reserves meeting next week.

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