Tough Nov. for Naira: CBN Steps Up FX Interventions by 348%
The Central Bank of Nigeria’s (CBN) FX injections into the currency market increased by 348% to about $637 million in November as the naira came under pressure.
The Apex Bank interventions in the forex market spiked as foreign portfolio investors rotated out from the Nigerian market amidst Nigeria’s new capital gains tax policy. While FX outflows increased, the market was faced with a dollar shortage.
Without the CBN, the naira would have automatically crossed N1500-N1600 range given a significant FX outflow from the markets. The authority injected $636.60 million into the forex market, according to TrustBanc Financial Group Limited.
This is a significant month-on-month increase of 348% from $142.20 million in October FX sales to authorised dealer banks. Still, the naira lost about 2% of its value at the official window despite a huge US dollar volume injection by the authority, signalling a very difficult time for the local currency.
At the first trading session in December, the Naira depreciated by 12 bps, or N1.69 to close at N1,448.4355/$, trading within a range of N1,452.00/$ to N1,445.00/$ during the session.
The depreciation was driven by lower price bids from the willing buyer as against the supply price level amidst expectations that the CBN will sell additional dollars this week to stem the ongoing dollar shortfall.
“We expect the naira to trade in line with prevailing demand and supply levels, as external reserves provide support,” AIICO Capital Limited said.
Latest data showed that Nigeria’s gross external reserve has increased to $44.6 billion amidst fluctuation in the global commodities market.
Oil prices rose more than 1% on Monday following drone attacks by Ukraine, the closure of Venezuelan airspace by the United States, and OPEC’s decision to leave output levels unchanged in the Q1 of 2026.
Brent crude gained 81cents, or 1.39%, to $63.25 per barrel, while U.S. West Texas Intermediate (WTI) rose by 90cents, or 1.54%, to $59.45.
Gold prices rose to a six-week high, supported by growing expectations of U.S. interest rate cuts and a sliding dollar, while silver struck a record high ahead of key U.S. economic data.
Spot gold spiked by 0.19% to $4,238.50/oz, while U.S. gold futures gained 0.04% to $4, 271.40/oz. Analysts expect the market to remain cautious and somewhat mixed — safe-haven assets like gold may continue to attract inflows, while rising oil prices could support energy-linked sectors.
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