In an effort to relieve pressure on the local currency, the Central Bank of Nigeria (CBN) has once again entered the foreign exchange market. According to a report, the top bank strengthened the supply side by selling $50 million to authorized dealer banks.In order to stabilize the exchange rate, this is done on a willing buyer, willing seller basis. As FX inflows continued to decline and US dollar demand for overseas payments increased, the naira began to face extreme heat.The dollar began the week at 1,447.7089/$ on Monday. By Wednesday, the local currency had dropped to 1,455.5981, even though it had peaked at 1,460.5000 during the day and ended the day at 1,455/$. The CBN has become less active with FX sales since the naira gained strength. However, with $50 million sold to qualified dealers, the authority was compelled to put real cash into the official window.
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