Naira Lost N13 Despite CBN $270m FX Interventions
The Central Bank of Nigeria (CBN) official exchange rate depreciated by N13 to close at N1609.63 against the US dollar following $270 million spent on FX intervention sales.
According to data obtained from the CBN FX platform, the naira depreciated to N1609.63 at the Nigerian foreign exchange market (NFEM) from N1596.68 per US dollar at the beginning of the week.
The FMDQ FX spot rate, however, appreciated slightly by 9 basis points to close at N1607.20. In the parallel market, the naira settled at N1620 amidst expectations that the CBN will end banks’ FX sales to bureau de change operators in May.
The USDNGN pair traded on a volatile note last week, opening with a bid tone as lower oil prices triggered renewed FX demand from both local and offshore participants.
The pair touched intraday highs of ₦1,614 but closed the week relatively stable within a ₦1,604–₦1,610 range. To keep liquidity strong, the CBN maintained a strong presence, intervening with an estimated $270 million in total sales across various sessions, helping to moderate pressure on the naira, AIICO Capital Limited said.
FX analysts highlighted that sporadic inflows from exporters also supported liquidity. Despite these efforts, the Naira weakened by N13 week on week to close at ₦1,609.63 on Friday, CBN data
Analysts at AIICO Capital Limited maintained that the CBN’s readiness to intervene should help anchor the naira near present levels, barring significant external shocks. In the forwards market, the naira rates appreciated across contracts following news that Nigeria has exited the International Monetary Fund (IMF) debt list.
The 1-month forward FX contract rose by +0.2% to N1,641.59 per US dollar, while the 3-month contract appreciated by +0.2% to N1,707.37. The 6-month fx forward contract climbed by +0.8% to N1,799.21, and 1-year edged higher by +1.7% to N1,988.66.
“We believe the persistent global pressures will continue to pose downside risks to naira stability in the near term, given their impact on capital flows. Nonetheless, relatively stronger FX reserves should bolster the CBN’s capacity to manage excess naira volatility through sustained market interventions in the near term”, Cordros Capital said in a note.
Despite uncertainties in the global oil market and sustained FX interventions, Nigeria’s external reserves improved slightly, up $86.66 million week on week to $38.09 billion.
Oil prices rose on Friday, posting a weekly gain as trade tensions between top oil consumers China and the United States showed signs of easing and Britain announced a “breakthrough” U.S. trade deal.
Brent crude rose $1.07, or 1.7%, to $63.91 a barrel. U.S. West Texas Intermediate crude gained $1.11, or 1.85%, at $61.02. On the week, both contracts were up more than 4%.
Gold rose over 1% on Friday as the dollar ticked lower, while the market digested recent tariff remarks from U.S. President Donald Trump ahead of a weekend meeting between the U.S. and China.
Spot gold was up 1.4% to $3,341.71 an ounce and gained nearly 3% so far this week. Outlook: A confirmed start date for trade negotiations coupled with mutual tariff reductions could provide market relief, potentially pushing crude prices up by $2 to $3 per barrel. Nigerian Exchange Index Hits All-time High in Explosive Rally
