Naira Gains N1.00 Against Dollar as CBN Injects $151 Million Into FX Market
By Aboki Forex —
The naira closed at N1,328.22 per dollar at the official foreign exchange market on Thursday, September 10, gaining N1.00 against the greenback. The modest recovery followed a fresh dollar injection from the Central Bank of Nigeria.
At the Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira strengthened from N1,329.22 recorded the previous day, a gain of 0.08%. The local currency also posted gains against the Pound Sterling and the Euro.
CBN Intervention and Reserves
The CBN sold $151 million into the market, with funds offered at rates between N1,322.71 and N1,331.50 per dollar, according to a market update from CardinalStone. The intervention came after the naira came under significant pressure in the previous session amid rising demand for foreign currency.
Nigeria's gross external reserves also rose to $54.283 billion, giving the country a larger buffer to defend the naira and absorb shocks from external economic pressures.
Mixed Fortunes Across Channels
The naira did not fare as well in all channels. At GTBank's foreign exchange counter, the currency slipped by N10 to trade at N1,340 per dollar, compared with N1,330 recorded on Wednesday.
At the parallel market, the rate held steady at N1,375 per dollar, leaving a gap of N46.78 between the street rate and the NAFEM rate.
Against other major currencies, the naira rose N3.93 against the Pound to settle at N1,798.22/£1. It strengthened by N7.28 against the Euro to close at N1,540.99/€1.
Interbank Activity Jumps
CBN data showed a sharp jump in interbank FX activity during Wednesday's trading session. Turnover climbed by 69.82% to $94.43 million, up from $55.60 million the session before. That represents an additional $38.82 million in transactions within a single day.
Trading volume also broadened, with the number of deals rising to 86 from 58 in the prior session, an increase of 28 trades, or 48.28%. The dollar traded within a range of N1,321.50 to N1,334 during the session, with a weighted average rate of N1,329.21 per dollar.
The rise in both the number and volume of deals suggests broader participation across interbank market players, rather than a handful of large trades driving the numbers. Interbank transactions, however, remain only a portion of overall market activity. On Tuesday, total NFEM turnover reached $933.78 million, with interbank deals accounting for a fraction of that figure.
Major Nigerian banks have also increased the amounts customers can spend internationally on naira cards, as improved foreign exchange conditions give lenders more room to expand access to dollar transactions. GTBank, FirstBank, Zenith Bank, UBA and Stanbic IBTC all announced higher limits in recent months, walking back curbs put in place between 2023 and 2025.