CBN Moves to Crash Dollar With $150 Million Sales to Access, Zenith, Other Authorised Dealer Banks
- The Central Bank of Nigeria (CBN) has intensified its bold move to stabilise the naira amid renewed volatility
- The local currency faced new pressure as heightened dollar demands resurfaced due to Christmas shopping
- The financial sector regulator stepped in to save the naira from further collapse with FX sales to authorised dealer banks
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Central Bank of Nigeria has sold $150 million to authorised dealer banks in a fresh attempt to ease pressure on the naira and improve dollar liquidity in the official market.
Updated market data shows that the intervention came as demand for foreign currency continued to outstrip supply, leading to another round of weakness for the local currency.
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FX inflows have remained sluggish despite recent improvements in oil receipts. This imbalance has allowed the dollar to maintain an upper hand, pushing the naira beyond levels analysts expected at this stage of the year.
Naira outlook remains fragile despite previous interventions
Traders say market expectations for 2025 remain cautious. Many anticipate the naira could settle around N1500 per dollar next year if the central bank keeps up its intervention pace and does not scale back liquidity support.
In November alone, the CBN spent just under $400 million defending the local currency at the official window.
Even with that level of support, the naira still slipped as supply-side pressure persisted. The same trend appears to be building again, with the currency now trading above what analysts earlier projected as its fair value for 2025.
Three intervention rounds in one week
According to a report by Market Forces Africa, last week, the apex bank entered the market three different times, each round involving a $50 million sale to authorised dealers.
These spot sales were aimed at easing immediate demand and preventing excessive volatility.
Market watchers say such frequent interventions show how determined the regulator is to stabilise the market, especially as the spread between official and parallel market rates has narrowed only slightly in recent weeks.
"The intervention is necessary because the naira is sliding fast in all the markets," Janet Ogochukwu, senior banker and economist, told Legit.ng on a call.
"This is usually the scenario at this time of the year when shoppers and importers place demands for dollars," she said.
Rising external reserves offer buffer for sustained support
Meanwhile, Nigeria’s gross external reserves have climbed above the $45 billion mark, helped by stronger oil earnings and the inflow of Eurobond proceeds.
The improved reserves position gives the central bank more room to continue supplying dollars when market pressure heightens.
Source: Twitter
Analysts believe the CBN will sustain FX interventions in the near term as long as reserves continue to grow and inflows remain steady.
Still, the path to a fully stable naira will depend on broader improvements in export earnings, investment inflows and confidence across the financial system.
Banks increase FX rate on naira cards
Legit.ng earlier reported that Nigeria’s foreign exchange market faced fresh pressure on Tuesday as major commercial banks adjusted the FX rates on naira-denominated debit cards used for international transactions.
Access Bank, Zenith Bank, UBA and others reviewed their card rates upward after the dollar inched higher in both the official and parallel markets.
The daily transaction rate for naira debit card payments rose to N1460 per dollar, up by N2 in just 24 hours.
Source: Legit.ng
