The naira, Nigeerian currency, rebounded against the US dollar at the official foreign exchange market on Wednesday, September 11, as the Central Bank of Nigeria (CBN) intervened with the sale of $60 million forex to some banks.
However, the impact of the CBN intervention is expected to lead to a slight decline in the country’s forex reserves level, which currently stands at $36.30 billion as of September 4.
The domestic forex market still requires more forex liquidity to strengthen the naira’s value against major global currencies.
The Presidency welcomed the development in a positive light on Thursday.
According to a statement, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the local currency “gained the most almost two months after the Federal Government announced its debut domestic dollar-bond issue, which attracted significant demand.”
Quoting Bloomberg data, Onanuga said the naira surged 4.8 percent against the dollar on Wednesday, the most considerable increase since July 22.
“The currency closed at N1,558 per dollar, its most substantial level against the greenback since August 21.
“Finance Minister Wale Edun said the government raised $900 million in its first domestic sale of dollar-denominated bonds, almost double the targeted amount,” he stated.
Naira waxes stronger in the aftermath of record domestic dollar bond oversubscription. The Naira gained the most almost two months after the Federal Government announced its debut domestic dollar-bond issue, which attracted significant demand.
