Naira Surges on CBN’s $29m Intervention, Analysts Predict Break Below N1,500
- The Nigerian currency remained upbeat due to foreign exchange inflows and the interventions by the Central Bank of Nigeria (CBN).
- The naira’s performance remained strong as experts raised hopes that it would break below the N1,500 threshold
- The development comes as Nigeria’s external reserves experienced a massive boost, rising by over $22 million last week to hit $41.66 billion
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The combination of foreign exchange inflows and interventions by the Central Bank of Nigeria (CBN) in the official market has continued to boost the naira’s performance against the US dollar.
The optimism that the local currency will break the N1,500 mark is becoming probable, according to trading data.
Source: Getty Images
Analysts predict a new threshold for the naira
The naira traded briefly below the N1,500 mark last week at N1,497 per dollar as the CBN continued to bridge the liquidity gap in the FX market.
Analysts have predicted that the naira will keep the momentum in the short term, despite the exchange rate expectations hovering between N1,500 and N1,600 per dollar at the official window.
According to reports by Market Forces Africa, the naira traded strongly throughout last week, boosted by ample dollar supplies from portfolio investors (FPIs), oil exporters, and other offshore flows.
The report disclosed that early in the week, trades closed between N1,500 to N1,514 per dollar, with expectations moving towards continued appreciation.
CBN’s interventions keep the naira strong
Midweek, the apex bank intervened by injecting $29.10 million across sessions, a prior report by Legit.ng stated.
The FX liquidity inflows further anchored the local currency against the dollar.
AIICO Capital Limited noted that fixing improved consistently, appreciating from N1,507.89 per dollar to N1,503.11.
By the end of the week, activity had clearly slowed, spreads had tightened, and demand had seen a notable improvement as pressure eased. Furthermore, liquidity conditions remained strongly favourable.
External reserves rise, boosting confidence
Reports say that by the close of the week, trades ranged between N1,498.00 to N1,503.50 per dollar, with the naira gaining 88.25 basis points on the week to N1,501.4991 per dollar on Friday, September 12, 2025.
Data from the CBN revealed that gross external reserves rose by $125.55 million to $41.66 billion.
AIICO Capital reported that in the near term, the FX market is expected to maintain its current stability.
Global market factors shaping Nigeria’s FX outlook
Meanwhile, oil prices rose on Friday, September 12, 2025, after a Ukrainian drone strike stalled exports from Russia’s largest western port.
Brent crude rose 0.93% to $66.99, and WTI gained 0.51% to $62.69, while Gold advanced to $3,648.55, near a record high, aided by weak US labour data and Federal rate cuts.
Futures rose 0.3% to settle at $3,686.40, marking their fourth consecutive weekly gain.
Source: Getty Images
The market is closely watching for potential sanctions or tariffs on Russian crude oil imports from India and China, which the Trump administration could impose.
Meanwhile, there is renewed optimism for the Naira exchange rate due to increased FX inflows and CBN interventions.
Naira rally narrows FX gap to just N10
Legit.ng earlier reported that the disparity between the official and parallel markets drifted further, as the naira maintained its gains in all FX markets.
The naira exchange rate gap fell sharply as the local currency surged against the dollar.
The dollar rate declined on Tuesday, September 9, 2025, as the market expected the US Federal Reserve to reduce rates after a disappointing job report.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
