The Central Bank of Nigeria (CBN) injected approximately $29.5 million into the foreign exchange (FX) market during the recent auction held on Thursday, June 21, 2023. At the Investors and Exporters (I&E) window, nine banks participated, bidding between N765 and N755. However, despite the intervention, the naira experienced a 0.25% depreciation on Thursday, June 22, 2023, as the dollar was quoted at N765.13 compared to N763.17 the previous day, as per data from the FMDQ.
Reports indicate that First Bank, Ecobank, Access Bank, Standard Chartered, Wema Bank, FBN Merchant Bank, Coronation Bank, and Globus Bank were among the nine banks that purchased the forex from the CBN. Each bank acquired the foreign currency at varying rates in accordance with the auction guidelines. The highest exchange rate recorded was N770 to a dollar, with approximately $5 million transacted, while the lowest rate was N760, involving approximately $9.5 million.
In line with efforts to stabilize market forces and bolster the value of the naira, the Nigerian government announced plans to inject additional foreign exchange into the economy. Dele Alake, the Special Adviser to President Bola Tinubu, disclosed these plans during a press briefing in Paris on Wednesday, June 21, 2023. Alake’s statement comes at a time when the naira is witnessing a notable recovery against the dollar in the parallel market.
The CBN’s ongoing interventions and the government’s commitment to injecting foreign exchange aim to restore stability and improve the naira’s performance against major currencies. Market observers will closely monitor the impact of these measures on the foreign exchange market and assess their effectiveness in strengthening the Nigerian economy.
