The CBN intervenes in Nigeria’s forex market to slow the naira’s rapid appreciation, mopping up $72m amid rising external reserves of $46.91bn

The Nigerian Central Bank (CBN) intervened in the foreign exchange market last week to slow the naira’s rapid appreciation against the US dollar, following a surge in the local currency driven by strong inflows from investors, exporters, and non-bank corporates.

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The naira had strengthened sharply at the official window, reaching an intra-week low of ₦1,358 per dollar, up from ₦1,445 at the end of December 2025.

To stabilise the market, the CBN purchased $72 million, mopping up excess dollar liquidity.

Economists note that increased offshore investment in Nigeria’s financial markets continues to supply dollars, reflecting attractive yields on local instruments.

Janet Ogochukwu, a senior banker, explained that the intervention was aimed at reducing the widening gap currently ₦94—between official and parallel markets.

Nigeria’s external reserves rose by $736.67 million, reaching $46.91 billion, buoyed by oil receipts, remittances, and non-oil inflows.

Analysts predict that the FX market will remain relatively stable, supported by rising reserves, policy measures, and improved investor confidence.

Meanwhile, global oil prices fell, with Brent crude dropping to $67.60 per barrel, while gold rallied to $4,966 per ounce, reflecting contrasting commodity trends.

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Despite the temporary depreciation following the CBN’s intervention, the naira ended the week stronger at ₦1,366.19 per dollar, up from ₦1,386.55 the previous week, reflecting a positive sentiment in Nigeria’s forex market.