Naira closes July at ₦1,368.22 as CBN sustains interventions
The naira concluded July on a positive note, appreciating to ₦1,368.22 against the US dollar, driven by sustained CBN liquidity interventions and steady growth in external reserves.
The Nigerian naira concluded the month of July on a positive note, appreciating to ₦1,368.22 against the US dollar in the official foreign exchange market. Financial analysts attributed the local currency’s gains to sustained dollar liquidity interventions by the Central Bank of Nigeria (CBN) and steady growth in external reserves.
The naira’s appreciation is a positive sign for the Nigerian economy. The currency has been under pressure in recent years, and the CBN’s efforts to stabilise it appear to be working. The growth in external reserves suggests that the CBN has the firepower to continue intervening.
However, the appreciation must be seen in context. The naira is still far from its pre-2023 levels, and the currency remains vulnerable to external shocks. The CBN must continue to manage the exchange rate carefully.
This echoes the 2021 naira appreciation, which was also driven by CBN interventions. The mechanism then was different, but the result was the same: a more stable currency.
The winners: the naira, which has appreciated; and the Nigerian economy, which benefits from a stable currency. The losers: the Nigerian public, who have yet to feel the benefits; and the CBN, which must continue to manage the exchange rate.
Bottom Line: The naira has closed July at ₦1,368.22. The CBN’s interventions are working. The question is whether the stability can be sustained.