By Daniel Edu
The Central Bank of Nigeria (CBN) has injected over $300 million into Deposit Money Banks (DMBs) in the past two weeks in an effort to stabilize the naira against the dollar. The move is seen as part of the CBN’s strategy to manage the fluctuating exchange rate and ensure liquidity in the foreign exchange market. The injection aims to meet legitimate foreign exchange demands for various purposes, including business transactions, travel, medical needs, and education abroad. The CBN’s intervention comes amid significant volatility in the naira’s value in recent times. The bank has sold dollars to banks at rates reportedly below N1,500 per dollar. The naira appreciated against the dollar at the official market, closing at 1,582/$ on Monday. However, it slipped slightly at the parallel market to between N1,555/dollar and N1,560/dollar. The CBN’s efforts are also part of measures to curb speculative activities that contribute to currency devaluation.
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