CBN Injects $50m Into Forex Market to Stabilise Naira Amid Rising Dollar Demand
- The Central Bank of Nigeria has sold $50 million to authorised dealers to ease pressure on the naira as dollar demand rises
- This is coming less than six months after a similar intervention was made by the apex bank, for the same purpose
- The naira has remained volatile, trading between 1,447/$ and 1,460/$ this week despite earlier signs of stability
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
In a move to ease pressure on the local currency, the Central Bank of Nigeria (CBN) has again intervened in the forex market.
The apex bank sold $50 million to authorised dealer banks to strengthen the supply side. However, the arrangement was based on a willing buyer, willing seller basis, Daily Trust reported.
Source: Original
Reports also reveal that demand for the US dollar for foreign payment has increased while the naira struggles to withstand the pressure.
Naira continues to rise-fall
Naira has been unstable in recent times as demand for foreign currency remains high.
The local currency started trading at 1,447.7089/$ on Monday, and by Wednesday, it had depreciated to 1,455.5981, even as it had peaked to 1,460.5000 during the day before closing the day with 1,455/$.
Before the latest intervention of $5m, analysts had noted that the CBN has become less aggressive with FX sales as the naira gained weight in recent times.
CBN sold $50m earlier this year
Legit.ng had earlier reported that the apex bank, in June 2025, sold $50m to banks amid volatility in the exchange rate markets.
At the time, the naira was reportedly depreciating for several days, forcing the CBN to intervene.
Major lenders such as United Bank for Africa (UBA), Access Bank and Zenith Bank were sold the foreign currency as demand intensified.
Naira experienced sustained appreciation
In October, analysts predicted that the local currency would continue its appreciation trajectory. However, the reverse is the case.
The prediction came at the time the naira showed sustained appreciation for seven consecutive days in the official forex market.
The currency appreciated by 0.17% at the time, according to data from the Nigerian Foreign Exchange Market (NFEM).
Legit.ng had reported that the naira’s climb comes amid predictions by financial analysts that it could hit N1,400 to N1,450 per dollar by year's end.
However, with the CBN forced to intervene in the forex market due to volatility, the prediction is unlikely, though changes are expected in the coming days.
Source: Twitter
Naira falls despite high foreign reserves
Legit.ng had reported the fall of the naira despite the CBN governor, Yemi Cardoso, confirming that foreign reserves were at a seven-year high.
The CBN governor had said the reserve level, which can cover more than 10 months of imports, reflects improving economic conditions and rising foreign appetite for Nigerian assets.
Cardoso added that the gains were supported by increased crude sales, better market liquidity and policies aimed at stabilising the exchange rate.
Source: Legit.ng
