MPC Member Predicts New Exchange Rate by Dec, As CBN Boosts Forex Liquidity With $574m

• As part of its efforts to boost the naira, the Central Bank of Nigeria injected over $500 million into the FX market.
• The move helped the naira appreciate, bringing it below the N1,500 exchange rate barrier against the U.S. dollar.
• A CBN MPC member has projected that the naira’s strong performance will continue, with the currency expected to hit N1,400 per dollar by December

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) sold $574 million in August 2025 to stabilise the foreign exchange (FX) market.

The intervention is a 76% jump from the $326 million sold in July 2025, as inflows from key sources weakened.

More dollars pumped to boost naira

Data from FMDQ Exchange showed total FX inflows fell 12% month-on-month to $3.4 billion in August, reversing a brief recovery in July.

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The decline was driven mainly by a sharp drop in foreign portfolio inflows (FPIs), which slid 35% to $1.1 billion from $1.7 billion.

Analysts at FBNQuest said the pullback highlights the vulnerability of offshore flows amid global uncertainties.

Still, FPIs remained the largest source of liquidity, making up 86% of foreign-sourced inflows and 32% of total supply.

Fixed-income instruments accounted for $951 million of portfolio flows, while equities attracted $139 million.

Foreign direct investment (FDI) remained weakened, sinking to $22 million in August from $49 million in July, BusinessDay reports.

Domestic inflows also slowed, with non-bank corporates contributing $826 million, down 28% from July.

However, export receipts rose to $654 million, providing a more stable source of FX.

FBNQuest noted.

“The CBN’s stepped-up interventions, combined with measures to attract more stable FX sources, will be critical in sustaining market liquidity."

Naira exchange rate

The naira, however, weakened at the official market, closing at N1,494.01 per dollar on Wednesday versus N1,484.13 the previous day.

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In the parallel market, the currency held steady at N1,525, while Guaranty Trust Bank maintained its international transaction rate at N1,515.

According to CBN data, Nigeria’s external reserves rose 2.3% to $41.89 billion as of September 16, compared with $40.96 billion on August 18.

Here is a snapshot of latest exchange rate

Meanwhile, Murtala Sabo Sagagi, a member of the CBN committee, in his personal statement after the Monetary Policy Committee (MPC)’s 301st meeting, predicted that the naira will appreciate further.

He said:

"With the recent increase in daily crude oil production, new inflows of capital, and an improved balance of payments, the naira is likely to continue appreciating and could reach the projected N1,400/$1 before the end of the year."

CBN gives new on leadership changes

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) has directed Domestic Systemically Important Banks (DSIBs) to secure approval for successor Managing Directors/CEOs at least six months before the incumbent leaves office.

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It added that the banks must make the appointments public at least three months before the outgoing MD/CEOs officially leave office.

Source: Legit.ng