Naira Gains Against Dollar as CBN Injects $151m Into FX Market
- The naira closed at N1,328.22 per dollar at the official market, gaining N1.00 against the greenback on Thursday
- The Central Bank of Nigeria pumped $151 million into the FX market at rates ranging from N1,322.71 to N1,331.50 per dollar
- Interbank FX turnover jumped by 69.82% to $94.43 million as the number of deals rose from 58 to 86 in a single session
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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 naira recorded a modest recovery against the US dollar at the official foreign exchange market on Thursday, supported by a fresh dollar injection from the Central Bank of Nigeria (CBN).
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,328.22 per dollar, up from N1,329.22 recorded the previous day a gain of N1.00, or 0.08%.
Source: Getty Images
The local currency also posted gains against the Pound Sterling and the Euro. It rose N3.93 against the Pound to settle at N1,798.22/£1, while it strengthened by N7.28 against the Euro to close at N1,540.99/€1.
CBN steps in with $151m
The recovery followed a CBN intervention in which the apex bank sold $151 million into the market. According to a market update from CardinalStone, the funds were offered at rates between N1,322.71 and N1,331.50 per dollar.
The move came after the naira came under significant pressure during the previous trading session amid rising demand for foreign currency.
Nigeria's gross external reserves also rose to $54.283 billion, giving the country a larger buffer to defend the naira and absorb shocks from external economic pressures.
However, the naira did not fare as well in all channels.
At GTBank's foreign exchange counter, the currency slipped by N10 to trade at N1,340 per dollar, compared with N1,330 recorded on Wednesday.
At the parallel market, the rate held steady at N1,375 per dollar, leaving a gap of N46.78 between the street rate and the NAFEM rate.
Interbank activity picks up sharply
CBN data showed a jump in interbank FX activity during Wednesday's trading session. Turnover climbed by 69.82% to $94.43 million, up from $55.60 million the session before.
That represents an additional $38.82 million in transactions within a single day, Punch reports.
Trading volume also broadened, with the number of deals rising to 86 from 58 in the prior session an increase of 28 trades, or 48.28%.
The dollar traded within a range of N1,321.50 to N1,334 during the session, with a weighted average rate of N1,329.21 per dollar.
Source: Getty Images
The rise in both the number and volume of deals suggests broader participation across interbank market players, rather than a handful of large trades driving the numbers.
Interbank transactions, however, remain only a portion of overall market activity.
On Tuesday, for instance, total NFEM turnover reached $933.78 million, with interbank deals accounting for a fraction of that figure.
Banks increase international card limits
Earlier, Legit.ng reported that major Nigerian banks have increased the amounts customers can spend internationally on naira cards, as improved foreign exchange conditions give lenders more room to expand access to dollar transactions.
GTBank, FirstBank, Zenith Bank, UBA and Stanbic IBTC all announced higher limits in recent months.
The adjustments walk back curbs that were put in place between 2023 and 2025.
Source: Legit.ng
