Naira Slips to ₦1,326.52 as CBN Injects $151m Into FX Market
The Nigerian naira ended the week on a weaker note at the official foreign exchange market, falling to ₦1,326.52 against the US dollar, despite fresh dollar sales by the Central Bank of Nigeria (CBN).
The currency lost 0.40 per cent at the Nigerian Foreign Exchange Market (NFEM) compared with the previous week, as demand for foreign currency continued to put pressure on the market.
The CBN was reported to have injected approximately $151 million through sales to eligible banks, with the intervention aimed at improving dollar liquidity and supporting stability in the official market.
Parallel Market Records Stronger Naira
While the official market recorded a decline, the naira strengthened at the parallel market, where the dollar traded at about ₦1,370 at the end of Friday’s session.
This left a difference of ₦43.48 between the official and parallel-market exchange rates.
The contrasting movements in the two segments highlight the continued sensitivity of the foreign exchange market to changing levels of dollar supply and demand.
External Reserves Rise
Nigeria’s external reserves also posted a weekly increase, climbing 0.52 per cent to $54.41 billion.
The reported growth was linked to fresh inflows, including remittances and foreign portfolio investments.
Higher reserves provide the CBN with additional resources to intervene when pressure builds in the foreign exchange market. However, the latest movement of the naira shows that reserve accumulation alone has not completely removed short-term demand pressures.
Rising Oil Prices Offer Relief
The currency market developments came as international crude oil prices remained relatively high.
Brent crude was quoted at $104.20 per barrel, while West Texas Intermediate stood at $99.17 per barrel.
Nigeria’s Bonny Light also recorded a strong weekly performance, rising 18.32 per cent to $121.33 per barrel.
Higher crude prices could strengthen Nigeria’s foreign-exchange inflows and potentially provide additional support for the naira if the trend is sustained.
Outlook for the Naira
Market participants are expected to keep a close watch on CBN interventions, dollar demand, reserve accumulation and crude oil prices as they assess the currency’s direction.
Although stronger reserves and higher oil prices offer positive signals, analysts expect the naira to remain vulnerable to short-term swings as demand for foreign exchange continues to fluctuate.
The latest figures therefore suggest that maintaining naira stability will require sustained dollar inflows and effective management of liquidity in the foreign exchange market, rather than relying solely on reserve accumulation or occasional CBN interventions.
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