The Central Bank of Nigeria (CBN) has injected $150 million into the nation’s foreign exchange (FX) market, a move aimed at calming volatility and reinforcing the naira’s recent momentum.
The intervention, which saw the apex bank sell U.S. dollars directly to commercial banks, comes against the backdrop of fluctuating demand for foreign currencies—particularly the greenback.
According to TrustBanc Financial Group Limited, the move does not signal a return to a fixed exchange rate regime. Instead, it reflects a discretionary response to temporary market distortions, such as the recent turbulence triggered by global tariff concerns following U.S. President Donald Trump’s Liberation Day announcement.
Last week, trading activity on the Nigerian Foreign Exchange Market (NFEM) was dominated by selling pressure, forcing the exchange rate below ₦1500 per dollar. Data from AIICO Capital Limited showed weak bids coupled with stronger supply from offshore players and exporters dragged the official NAFEX rate to ₦1502.56 per dollar.
Although liquidity thinned midweek as supply slowed, demand surged later from corporates and portfolio investors, prompting the CBN’s intervention. The apex bank sold dollars within the ₦1491.50–₦1509.00 range.
The injection helped the naira close stronger on Friday at ₦1487.90 per dollar, gaining 0.9% week-on-week. In the parallel market, however, the currency ended at ₦1520 amid supply-demand imbalances.
TrustBanc noted that with foreign reserves climbing by $299.7 million to $41.99 billion, narrowing spreads, and growing investor confidence, conditions are stabilizing. However, the firm stressed that “sentiment, not just supply, will ultimately determine how long the floor holds.”
Analysts at Cordros Capital Limited projected short-term naira stability, supported by resilient FX liquidity, stronger non-oil export receipts, and reduced speculative activity. They added that dovish global monetary policies and lower treasury yields could boost portfolio inflows into naira assets.
Meanwhile, commodity markets remain volatile. Brent crude slipped 1.1% to $66.68 per barrel, while U.S. WTI fell 1.4% to $62.68 amid oversupply concerns. Gold prices, however, surged for a fifth consecutive week, with spot gold climbing to $3,672.08 per ounce.
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