The Nigerian Naira traded lower against the US dollar on the interbank exchange market in September, according to the data provided by the Central Bank of Nigeria.
The local currency opened the month between N306.85 and N306.95 to a dollar, the range maintained through CBN intermittent intervention in the foreign exchange market.
Data revealed that the apex bank defended the Naira with $845.85 million and CNY56.8 million in September.
The CBN continues to intervene in the foreign exchange market to ensure dollar liquidity and sustain the Naira.
However, the drop in oil price below the 2019 benchmark of $60 a barrel to $58 would weigh on that ability if the oil market remained bearish for a long time.
Nigeria’s foreign reserves has been declining with the global oil price since June, therefore, the Federal Government needs higher oil price to fund the 2019 budget and sustain CBN intervention program.