Naira’s Stability Masks Deeper Volatility as CBN Battles FX Demand
By Aboki Forex —
On the surface, recent performance signals improving macroeconomic stability and a gradual restoration of investor confidence in Nigeria’s currency framework. But intraday movements tell a more nuanced story.
Mid-month, the naira briefly strengthened to N1,341.01 per dollar. It then retraced losses toward the end of April as corporate FX demand, import obligations, and portfolio adjustments returned to the market.
At the center of this stability effort is the Central Bank of Nigeria’s continued presence in the FX market. Through periodic dollar sales and liquidity injections, the apex bank has sought to reduce volatility, narrow exchange rate disparities, and curb speculative trading activity.