The naira rebounded on Monday and closed at 366 per United States dollar. The local unit, which opened last week at 369/dollar had closed at 367/dollar on Friday.
The naira weakened two weeks ago and traded flat at 369/dollar for some days. Earlier, the local currency had been closing flat at 365/dollar.
This followed the Central Bank of Nigeria’s continued injection of the greenback into the foreign exchange market.
The CBN has been injecting between $250m and $300m into the various segments of the inter-bank foreign exchange market in recent times.
Meanwhile, the CBN on Monday injected $195m into the three segments of the foreign exchange market.
In the wholesale Secondary Market Intervention Sales, of the inter-bank foreign exchange market, it auctioned $100m and also intervened in the Small and Medium Enterprises and invisible segments, with the sum of $50m and $45m respectively.
The CBN’s intervention is significant, coming amid the Monetary Policy Committee Meeting taking place on Monday and Tuesday.
The CBN had last week reportedly sold $545m, as the retail Secondary Market Intervention Sales received the largest intervention of $285m.
Other segments include the $100m offered for wholesale SMIS, $90m for the Small and Medium Enterprises window and $70m for invisibles such as Basic Travel Allowances, tuition fees and medical payments.
The CBN had threatened to sanction any Deposit Money Bank in breach of its earlier directive of March 3, 2017, which instructed them to, among other things, open teller points for retail forex transactions and to have electronic display boards in all their branches, showing rates of all trading currencies.