Nigeria’s external reserves rose 0.2 per cent month-to-date to $31.5 billion as at last week, representing a $200 million increase from the July record, which was put at $31.3 billion.
According to the Head of Afrinvest Securities Limited, Ayodeji Eboh, the increase was expected given the increased efforts of the Central Bank of Nigeria (CBN) to reduce speculative attacks on the local unit.
“CBN continues to dismiss calls to devalue the naira. We expect that the pressure in the parallel market may soften as the foreign exchange market remains closely watched by the apex bank,” he said.
Meanwhile, the naira traded flat at N199.10/$ week-on-week at the interbank foreign exchange market, while amount of dollars sold remained reasonably below level of demand despite autonomous sales by oil companies.
CBN’s intervention in the interbank market at N197/$ pushed the week-on-week performance to stability in the segment, with its support for the action of deposit money banks to reject dollar deposits from customers into their domiciliary accounts.