Naira Gains to N1,328.22/$ as CBN Sells $151 Million to Banks

The naira strengthened to N1,328.2154 per dollar at the Nigerian Foreign Exchange Market (NFEM) after the Central Bank of Nigeria sold $151 million to eligible deposit money banks. The local currency improved from N1,329.2129 per dollar recorded in the previous session.

The intervention followed renewed pressure on the currency and was aimed at boosting dollar supply to financial institutions and supporting smoother transactions in the official market.

Trading Range Holds Despite Demand

Trading during the session ran within a range of N1,322.71 to N1,333 per dollar, suggesting the naira stayed relatively stable even as demand for foreign currency persisted.

The CBN's market intervention is closely watched by businesses, importers and investors because dollar availability feeds into the cost of imports, production inputs and eventually consumer prices.

Deals Rise to 234 From 86

Activity among financial institutions picked up sharply. CBN data showed the number of deals rose to 234 from 86 in the previous trading day, a substantial increase in transactions among authorised market participants.

The higher turnover points to improved liquidity. It does not remove the underlying pressure, however, since steady dollar demand means the naira could still face periods of weakness.

Reserves at $54.34 Billion

Nigeria's external reserves, reported at about $54.34 billion, give the CBN more room to support the FX market when needed. Higher reserves generally strengthen the apex bank's ability to meet legitimate foreign exchange demand and respond to excessive volatility.

Repeated intervention can also signal that underlying dollar demand remains strong. That means the sustainability of the naira's gains will depend on continued FX inflows and market liquidity.

Analysts expect the currency to stay around its current trading range in the near term, with movement driven largely by dollar demand, foreign inflows and the CBN's liquidity management.

In an earlier session, the naira closed at N1,329.43 per dollar compared with N1,332.94 the previous trading day, according to CBN data.

What It Means for Businesses

For Nigerian businesses that depend on imported raw materials, machinery and finished goods, a stronger and more stable naira could ease uncertainty around replacement costs and pricing. Households and businesses will now watch whether the naira can hold onto the latest gains and whether the improvement filters into wider prices.