Naira Depreciates Despite $50m FX Injection by CBN
The naira declined against the US dollar in the official foreign exchange market despite the Central Bank of Nigeria’s FX sales to banks to boost the supply side. According to data from the Central Bank, the Nigerian Foreign Exchange Market closed at N1602.63 per greenback, down from N1599.93 opening spot rate.
FX traders reported that the naira-US dollar pair fluctuated between N1,598.50 and N1,610 in the official FX market on Tuesday. However, by the close of trading, the naira weakened slightly by 17 basis points to settle at N1,602.6318 per US dollar.
The value of the local currency dropped despite the CBN’s intervention in the FX market, where $50.0 million was sold within a range of N1,598.85 – N1,605.00. Some analysts expressed concerns over persistent FX sales to keep the naira steady in the foreign exchange, considering the negative impacts on the nation’s external reserves.
In 2025, foreign reserves have fallen by approximately $3 billion year-to-date to hit a six-month low of $37.88 billion, according to data from the CBN. The Apex Bank has been instrumental in the FX supply boost across the forex market as companies and foreign investors continue to upstream dollars abroad to meet eligible obligations.
Last week, the Nigerian Autonomous Foreign Exchange Market (NAFEM) window recorded an inflow of US$1.42 billion, up by 68% from a total sum of US$847 million reported in the previous week.
Further review showed that the CBN drove the significant spike in FX volume, which accounted for 50.60% of the total inflow. Other contributors include foreign portfolio investors (FPIs) at 8.61%, non-bank corporates at 25.14%, and exporters at 12.99%, while other sources accounted for 2.66%.
Elsewhere, oil prices gained over $1 per barrel on Tuesday, rebounding from the previous session’s sharp losses, as fresh U.S. sanctions on Iran and gains in global equity markets lifted investor sentiment.
Brent crude rose $1.15, or 1.7%, to $67.41 per barrel, while the U.S. West Texas Intermediate (WTI) contract for May delivery, expiring Tuesday, climbed $1.24, or 2%, to $64.32.
Meanwhile, gold prices extended their record-breaking streak, surging past $3,500 per ounce, driven by a weaker dollar, concerns over U.S. trade policy, and President Donald Trump’s renewed criticism of the Federal Reserve.
Spot gold held steady at $3,425.91 after earlier peaking at $3,500.05. U.S. gold futures edged up 0.4%, settling at $3,438.40 per ounce. #Naira Depreciates Despite $50m FX Injection by CBN Pension Fund Assets Grows to N23.366 Trillion
