CBN Powered Naira Rally with $70m FX Sales to Banks
The Central Bank of Nigeria (CBN) fueled demand for naira by selling $70 million to authorised dealer banks in the forex market.
The CBN gave the naira fresh flavour as the official rate appreciated to N1480, reflecting absence of US dollar pressures amidst growing external reserves.
External reserves surged to $42.225 billion during the week, its highest level since 2021. MarketForces Africa reported that the nation’s gross foreign reserves grew by $5 billion since June when it hovered at $37 billion.
In commentary note, analysts at Cowry Asset Limited said the build-up, fueled by improved FX inflows and steady CBN interventions, enhances the apex bank’s firepower to manage supply-demand gaps and bolsters confidence in the naira’s near-term stability.
In the global commodity market, prices of crude oil increased as supply fears resurfaced following Ukrainian strikes on Russian energy infrastructure that prompted Moscow to restrict fuel exports.
Brent crude edged up 0.33% to $69.65 per barrel (bbl), while WTI climbed 0.51% to $65.31/bbl, leaving both benchmarks on track for weekly gains above 4%.
Nigeria’s Bonny Light outperformed, jumping 1.79% to settle at $70.90/bbl. For Nigeria, the twin boost of firmer oil prices and modest reserve accretion provides a stronger buffer against external shocks, while reinforcing the CBN’s capacity to defend the currency and safeguard macroeconomic stability.
Cowry Asset expects the naira to stay relatively stable across markets, supported by stronger US dollar inflows, reserves build-up, and sustained CBN interventions.
Analysts said higher oil prices should further strengthen external buffers and investor confidence. Still, risks from global oil price swings and persistent domestic demand pressures mean sentiment could remain cautious Zenith Bank Gains as Investors Queue for Interim Dividend
