Settlements of international obligations have forced the naira on a temporary retreat, depreciating against the dollar and other foreign currencies.
This is in spite of intervention by the apex Bank.
Analysts expect the CBN to keep a vigil on exchange rate movement amidst the final settlement of Covid-19 borrowings in 2025.
Latest spot forex data revealed that the local currency depreciated by 0.84 per cent in the official window, closing at N1,530.15 per US dollar from N1,517.24 at the beginning of the trading session on Monday.
US Dollar liquidity was formed during early trading hours on Monday, with a calmer market as many participants remained on the sidelines awaiting CBN intervention. Transactions were consummated between the rate of N1,520 and N1,545 for most of the session, supported by inflows from foreign investors and local corporations, AIICO Capital Limited revealed in a market update.
To boost inflows in the forex market, the CBN sold $112.20 million between N1,524.5 and NN1,537 to authorized banks. Despite this, the naira depreciated by 85 bps, closing at N1,530.15. According to data from the CBN reserves movement, the gross external reserves fell to $38.35 billion on Friday following sustained US dollar sales to banks and debt servicing payments.