Naira Plunges after CBN Twice FX Interventions to Redirect Rate
The naira plunged, losing about N6 per US dollar traded in the official market on Monday due to surging demand and relatively weak FX liquidity. According to spot FX data, the exchange rate weakened by N5.86 to close at N1,548.89 in the official window following a twice-FX intervention sales in the previous week.
Data from authorised traders revealed that the Central Bank of Nigeria intervened in the forex market twice last week to boost FX inflows and strengthen the supply side’s ability to withstand demand for the US dollar.
At the first FX auction, the authority sold $50 million to authorised dealer banks, and the naira still lost against the US dollar. On Friday, the CBN raised its FX interventions slightly and sold $59 million to banks to keep the naira volatility in check.
The Apex Bank foreign exchange auction to banks was priced between N1,535 and N1,546 per US dollar, dealers said in a note. The two times FX intervention sales totalling $109 million reduced foreign currency demand pressures, which has continued tothrowg curveballs.
MarketForces Africa reported that exchange weakened last week as the naira lost about N9 against the US dollar. First time in the New Year, Nigeria’s external reserves also declined. Still strong, gross external reserves has fallen 4 times in 2025.
In the global commodity market, oil prices continued to rise for the third consecutive session, with Brent crude surpassing $80 per barrel, reaching its highest level in over four months. This increase was fuelled by expanded U.S. sanctions on Russian oil and the anticipated impact on exports to major buyers like India and China.
Brent crude was quoted at $81.03 per barrel, while WTI hovered around $78.00. Conversely, gold prices dipped as the U.S. dollar soared to a two-year high following a strong jobs report last week, reinforcing expectations that the Federal Reserve will be cautious about cutting interest rates this year. #Naira Plunges after CBN Twice FX Interventions to Redirect Rate CBN Opens FX Window for BDC to Stock up at NFEM Rate
