CBN Sells $150 Million to Authorised Dealers at N1,593, N1,623 amid Naira’s Crash
- The Central Bank of Nigeria (CBN) has intervened again in the FX market, selling an additional $150 million to authorised dealers
- The development comes as the naira continues to tumble in the FX market, which analysts say is caused by global trade dynamics and falling oil prices
- On Tuesday, April 15, 2025, the local currency depreciated further, trading at N1,604 per dollar, down from N1,599 the previous day
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) injected an extra $150 million into the foreign exchange market at the beginning of the week to protect the local currency from further declines.
Analysts have said that the naira would stabilise in the second quarter of this year but warned that with raging global tariff wars and falling crude prices, the local currency may still come under pressure.
Source: Getty Images
CBN moves to stall the naira’s crash
Last week, the apex bank sold about $635 million to authorised dealers in the forex market as it intensified efforts to boost liquidity levels in the market.
According to reports, a potential slowdown in the US dollar supply could cause negative exchange rate movements.
Reports say the naira faced further demand pressure in the official market as foreign investors pulled assets, affecting the naira’s position.
CBN sells dollars at cheaper rates to dealers
To halt the negative effect of high demand for the US greenback, the financial sector regulator intervened, selling $150 million at N1,593.20 and N1,63, respectively.
AIICO Capital reported that throughout the session, the dollar and naira pair moved within a range of N1,593.10 to N1,630.
CBN’s data indicates that gross external reserves depreciated to $38 billion amid a decline in inflows and a drop in FX from oil.
Recall that Legit.ng earlier reported that CBN sold $197.71 million to authorised FX dealers as it battles to stabilise the local currency, assuring Nigerians that the economy is robust enough to withstand shocks arising from the ongoing trade wars.
Oil prices dropped on Monday, April 14, 2025, in the global commodity market despite positive signals, including exemptions for electronics from US tariffs and a drastic rebound in China’s crude imports in March.
The naira depreciates further
Meanwhile, the naira depreciated further in the FX market on Tuesday, April 15, 2025, following renewed volatility.
Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira crashed to N1,604 per dollar, down from N1,599 the previous day.
Authorised dealers quoted the dollar at a high of N1,630 and a low of N1,593 per dollar.
Naira: JP Morgan predicts new rates
The naira crash is coming when pundits say the local currency will stabilise around N1,490 per dollar.
Specifically, JP Morgan, the US investment banking giant, said the local currency would rally and strengthen following the leadership change at the Nigerian National Petroleum Company Limited and CBN’s declared net FX reserves.
The company disclosed this in its note to investors on Wednesday, April 2, 2025, stating that the Nigerian market provided enough rate protection to ease potential FX losses.
Source: Getty Images
According to the bank, it expects Nigeria's T-Bills to continue to perform well due to imminent catalysts, as the Central Bank of Nigeria (CBN) published net FX reserves, while President Bola Tinubu changed the board and management of the NNPC.
Naira gains against dollar as CBN
Meanwhile, Legit.ng previously reported that the naira rebounded against the dollar in the Nigerian Foreign Exchange Market (NFEM) on Thursday, April 10, 2025, after several days of decline.
At the end of trading, the naira gained N14.50 to close at N1,630.500 from N1,644 per dollar the previous day.
Currency dealers quoted the dollar at a high of N1,636 and a low of N1,500, leaving a margin of N136 against the dollar.
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Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
