Spot exchange rates moved in different directions across various market segments as the Central Bank of Nigeria (CBN) injected over $471 million into the foreign exchange (FX) market over a three-day period. The intervention aimed to stabilize the naira amid rising foreign portfolio investor (FPI) outflows and global market uncertainty.
FPIs have continued to unwind their positions in Nigerian assets, seeking safer investment options in response to heightened global risk sentiment. The ongoing U.S.-initiated trade war has intensified risk-off behavior in emerging markets, triggering widespread selloffs in African Eurobonds. Analysts warn that the resulting volatility could stoke inflationary pressures and dampen global growth.
Compounding the pressure is the recent decision by the Organisation of Petroleum Exporting Countries and its allies (OPEC+) to increase oil output, which has sent crude prices tumbling. The downturn in global commodity prices is expected to weigh heavily on Nigeria’s foreign revenue projections, further straining the 2025 budget assumptions.
In the official Nigeria Foreign Exchange Market (NFEM) window, the naira weakened by 1.78% to N1,629 per dollar, according to CardinalStone Partners Limited. In contrast, the FMDQ FX window recorded a slight appreciation of the naira, rising 0.93% to close at N1,616.88/$.
However, the parallel market saw a sharp depreciation of 4.32%, with the naira falling to N1,638.40 per dollar as demand surged, reversing previous gains.
As part of its intervention efforts, the CBN sold $149.4 million at rates ranging between N1,603.11 and N1,620.00. This followed earlier sales totaling $321.71 million on Friday and Monday, bringing the three-day intervention to over $471 million.
According to CardinalStone, Nigeria’s net FX reserves position suggests that the CBN could sustain its current monthly FX sales pace of $714.65 million for up to 32 months, providing a buffer to support the naira in the near term.
 injected over...){kind=link}