Naira Reacts, Falls Against USD as CBN Moves Fast With Dollar Sales
- The Nigerian naira finally caved in to global tensions on Friday, November 9, 2025
- The local currency shed N15 against the US dollar to close at N1,436.58 per dollar, from N1,421.73 the previous day
- Meanwhile, the Central Bank of Nigeria (CBN) intervened in the official market, selling $50m to dealers
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigerian naira closed the week ₦15 weaker against the U.S. dollar, weighed down by a surge in dollar demand and heightened investor anxiety following threats of U.S. military intervention in Nigeria by President Donald Trump over alleged Christian genocide.
Source: Getty Images
The currency depreciated from ₦1,421.73 per dollar at the close of the previous week to ₦1,436.58 per dollar by Friday at the official window, reflecting a mild but symbolic retreat in the face of foreign exchange pressure.
Market analysts say the naira’s drop was largely driven by offshore investors exiting their positions in Nigeria’s financial markets after Trump’s controversial remarks sparked geopolitical jitters.
Foreign investors react, market stability tested
The foreign exchange (FX) market opened the week with significant losses as foreign portfolio investors (FPIs) became cautious, selling off local assets and repatriating funds to safer markets.
However, the situation stabilized midweek as some offshore investors returned to participate in Open Market Operation (OMO) instruments, while increased local demand for naira helped cushion the fall.
Exporters and non-bank corporates also contributed to liquidity, while the Central Bank of Nigeria (CBN) played a quiet but steady role in ensuring that market activities remained balanced.
CBN intervenes with $50 million to support naira
To ease pressure on the local currency, the CBN sold $50 million to commercial banks during the week. This injection, analysts say, was crucial in stemming speculative attacks on the naira and maintaining adequate dollar supply.
The intervention, combined with stable inflows from oil and non-oil sectors, helped reduce volatility and kept the market largely liquid despite rising external risks.
External reserves rise, boosting confidence
In a positive development, Nigeria’s external reserves rose by $43.2 million to reach $43.3 billion this week.
The increase reflects stronger inflows and improved fiscal buffers, supported by proceeds from the recently oversubscribed $2.35 billion Eurobond.
According to analysts at AIICO Capital Limited, “The naira is expected to remain stable in the near term, supported by sustained CBN policy measures and the positive impact of Eurobond inflows.”
Oil and gold prices show mixed trends
Oil markets faced a volatile week. After an early slump, crude prices recovered on Friday following reports that Hungary would continue using Russian crude oil.
Brent crude closed 1.76% lower at $63.63 per barrel, while U.S. WTI crude slipped 2.02% to $59.75 per barrel.
Gold prices also fluctuated, initially falling but rebounding on Friday as investors sought safe-haven assets amid uncertainty over the U.S. government shutdown.
Spot gold dropped 2.56% week-on-week to $3,999.72 per ounce, while U.S. gold futures fell 1.79% to $4,009.80.
Outlook: Stability expected, but headwinds remain
Despite the short-term pressure, analysts expect the naira to stabilize as the CBN maintains its interventions and external reserves improve.
Source: Getty Images
However, they warn that sustained global political tension, volatile oil prices, and investor caution could continue to shape currency performance in the weeks ahead.
Naira ranks high among 10 best-performing currencies in Africa
Legit.ng earlier reported that the Nigerian naira has been ranked among Africa’s ten best-performing currencies for October 2025, according to data from Investing.com and Trading Economics.
The naira appreciated by 3.4%, strengthening from ₦1,478/$ to ₦1,427.50/$, outperforming six other currencies on the continent.
This modest yet significant rebound follows a string of foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).
Source: Legit.ng
