Naira Pulls Back as CBN Contribution in FX Market Shrinks
The naira is pulling back in a successive manner across foreign exchange markets. The exchange rates plunged market wide as the central bank contribution in the forex market continues to shrink on the back of subpar FX sales to banks to boost liquidity.
In the official window, the naira fell by 10 basis points against the US dollar again on Wednesday as analysts cited a sustained forex supply challenge. Spot FX data from the FMDQ platform showed that the naira fell by 0.10% to close at N1,549.20 per US dollar on Wednesday.
Report showed that the CBN intervened in the FX market on Tuesday, selling $98.75 million to banks between the rate of ₦1,545 – ₦1,553 to boost FX liquidity in the official window as part of broader efforts to stabilise the naira.
Also, the parallel market also saw a 0.18% depreciation, closing at an average of N1,666 per greenback as demand eclipsed total FX supply.
FX liquidity challenge has continued to worsen in 2025 across currency market. This trend has left the market with no choice rather to price down the naira value against US dollar and other bellwether currency.
The CBN contribution in the forex supply settle at less than 8% of the total US dollar volume in the official window last week.
According to Coronation Research, the Nigerian autonomous foreign exchange market window recorded an inflow of US$289.10 million last week, down from US$419.90 million in the previous week.
However, the CBN only contributed 7.85% of the total inflow. Foreign portfolio investors (FPIs) strengthened the FX inflows, accounting for 36.63% of the US dollar volume.
Data showed that non-bank corporates contributed 25.80%, exporters added 27.17%, while other sources accounted for 2.55%. Analysts said FX inflows in the official market has been declining gradually since the Apex Bank began to withdraw from FX intervention in the market.
In the global commodities market, oil prices saw a modest uptick on Wednesday as West Texas Intermediate (WTI) crude futures rose by 1.23%, surpassing $78 per barrel, while Brent crude gained 1.04% to close at $80.75 per barrel.
The rally was primarily driven by softer US core inflation data, which fuelled expectations that the Federal Reserve might begin easing interest rates. In its latest report, the International Energy Agency (IEA) expressed caution regarding the full impact of geopolitical sanctions on the oil market, suggesting a level of uncertainty about how these measures will play out.
On the other hand, OPEC maintained its outlook for global oil demand growth, forecasting an increase of 1.43 million barrels per day by 2026.Naira Pulls Back as CBN Contribution in FX Market Shrinks #FBN Holdings Records Huge Off-Market Shares Transactions
