Naira Halts Losses after $500m FX Injections
At N1401 per dollar, the naira halted its negative trend in the foreign exchange market after data showed the Central Bank of Nigeria (CBN) pumped dollars to influence the direction of the spot rate at the official window.
The CBN’s total FX sales reached $500 million in the latest round of FX interventions, which took place on Tuesday, Wednesday, and Friday last week.
The action reversed CBN’s unusual FX purchases from the currency market last week, which strengthened the US dollar against the local currency.
With concerns that the local currency was gaining faster than anticipated, the Apex Bank began mopping up US dollars, and the naira spiralled downward for 13 consecutive trading sessions.
For the first time in three weeks, the naira appreciated across both exchange channels on Tuesday, rising 0.30% to ₦1,401.40/$ at the official window and 0.33% to ₦1,399/$ in the parallel market.
Oil prices eased to the $80 to $100 band on Tuesday after President Donald Trump indicated the U.S.-Iran conflict will end soon without being definite.
The Middle East war continues to dominate the investment environment. The dollar is firm. Equities are lower. Yields are higher. The disruption of trade through the Strait of Hormuz is forcing oil producers to shut down output due to limited storage capacity.
Sulfur and urea supplies are also being disrupted, as is natural gas, with knock-on effects on agricultural prices. Standing at the highest level since 2009, Nigeria’s gross external reserves are near $50 billion, reflecting $4.44 billion in additional inflows, bringing the total to $45.5 billion at the end of 2025. CBN to Open N850bn Treasury Bills for Subscription
