Naira Surges as CBN Sells $586m, External Reserves Hit $41bn
- The Central Bank of Nigeria (CBN) has intervened in the foreign exchange market, leading to the naira’s rally
- The apex bank sold dollars to authorised dealer banks twice last week as the naira briefly touched N1,538 per dollar in intraday trading
- Experts are optimistic that the naira will continue to surge amid the external reserves rally
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) intervened twice in the foreign exchange markets last week, selling $170 million to authorised dealer banks to boost FX supply.
The latest FX sales boosted the US dollar sold to banks to $586 million, a strong stance the bank has maintained since the beginning of 2025.
Source: Getty Images
CBN intervenes to save the naira
According to the report, the CBN rescued the local currency from further depreciation caused by surging forex demand from companies seeking foreign currency payments.
Market Forces Africa reported that the Nigerian Foreign Currency Market (NFEM) saw an elevated demand for dollars, leading to the naira depreciating above $1,538 during intraday trading.
The financial sector regulator sold $170 million to banks in two tranches to ease rising pressures on the official rate, despite inflows from foreign portfolio investors (FPIs).
OMO auctions save naira from depreciation
The CBN conducted open market operations, offering attractive rates to attract dollar inflows from offshore investors.
The two auctions were well received, and the naira value allotted to investors hit N1.19 trillion.
The rates on OMO papers were higher than usual, reflecting CBN’s desire to drive forex inflows into the currency market.
Also, Nigeria’s gross external reserves rose to $41.27 billion at the end of last month.
The naira rallies in all markets
Meanwhile, the naira has continued to appreciate in the foreign exchange market.
Data from the CBN showed that the naira hit a six-month high at N1,526 per dollar as of Monday, September 1, 2025.
Source: Getty Images
The Nigerian currency also appreciated in the parallel segment of the foreign exchange market, closing at N1,540 per dollar.
“The naira will continue to surge as long as the reserves are buoyant, Janet Ogochukwu, senior banker and economist, told Legit.ng on a call.
“I am sure the CBN does not want the naira to fall or rise below or above a certain threshold. So, the interventions are in order,” she said.
Banks cut dollar rates on naira cards
Amid the naira’s rally, Nigerian banks have cut interest rates on naira debit cards, a prior report by Legit.ng said.
On Monday, September 1, 2025, banks set the exchange rate for naira debit card payments at N1,542 per dollar, up from N1,545 last week.
GTBank sets new exchange rate on naira cards
Guaranty Trust Bank (GTBank) set its international payment on the naira debit card at N1,542 for international payment settled via Naira MasterCard on Monday, September 1, 2025.
According to reports, the naira debit card quoted for FX payment showed that the exchange rate improved relative to last week.
In the unofficial parallel market, the naira traded at N1,540 per dollar, representing a gain of N5 from last week’s rate.
Naira strengthens across FX markets
Legit.ng earlier reported that the Nigerian currency, the naira, appreciated in all forex markets following continued accretion in external reserves.
Investors' confidence was bolstered as the nation’s external reserves gained $1.7 billion in August, according to the latest data from the Central Bank of Nigeria (CBN).
The CBN data showed that the external reserves rose to $41.27 billion in the review period, as Olayemi Cardoso, CBN governor, said foreign remittances averaged $600 million in August.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
