Naira depreciates further against dollar, as CBN injects $7.6bn to defend currency

Nigerian currency – Naira – started the new week with another loss, to make it four straight days of depreciation.

According to data from FMDQ securities, where Naira is officially traded, on Monday, the Nigerian currency depreciated against the dollar to close at N436.50/$.

The figure represents a decrease of 0.04 per cent compared with N436.33 to the dollar recorded on Friday, September 9.

Traders in the black market said on Monday evening that Naira exchanged at N705 per dollar.

Meanwhile, the Central Bank of Nigeria (CBN) has revealed it intervened in the forex market with $7.6 billion sales to authorised FX dealers from January to May to help stabilise the Naira.

The apex bank said this in its monthly economic reports for May 2022.

CBN report reads: “Total foreign exchange sales to authorised dealers by the bank were $1.18 billion, a decrease of 24.4 percent below $1.56 billion in April.”

The report breakdown shows that $1.65 billion and $1.39 billion were sold in January and February, respectively.

Another $1.82 billion in March; $1.56 billion in April; and $1.18 billion in May 2022.