CBN Injects N9.71 Trillion Through OMO Bills as Naira Gains N19.67 Against Dollar in April
Nigeria’s foreign exchange market showed signs of renewed stability in April 2026, with the naira appreciating by N19.67 against the United States dollar. According to market data, the local currency strengthened by 1.42 per cent to close at an average exchange rate of N1,361.51/$, compared to N1,381.18/$ recorded in March. The improvement comes amid continued efforts by the Central Bank of Nigeria (CBN) to stabilise the currency and rein in inflationary pressures.
To support the foreign exchange market, the CBN significantly increased its liquidity management operations during the month, issuing Open Market Operation (OMO) bills worth N9.71 trillion. This represents a 27.37 per cent increase from the N7.62 trillion issued in March, highlighting the apex bank’s aggressive strategy to absorb excess liquidity from the financial system and reduce pressure on the naira.
The impact of these measures was evident in the reduced volatility recorded in the FX market. Throughout April, the naira traded within a narrower range of N1,341.01/$ to N1,389/$, compared to the broader fluctuation of N1,345/$ to N1,425/$ seen in March. Market observers say the tighter trading band reflects stronger investor confidence and a decline in speculative demand for foreign currency.
Financial analysts have linked the currency’s improved performance to the CBN’s disciplined monetary policies. Analysts at Cordros Capital noted that the increased OMO issuances demonstrate the regulator’s commitment to maintaining tight liquidity conditions, which helps contain inflation while supporting exchange rate stability. They added that the attractive yields on OMO instruments have continued to draw foreign portfolio investments, boosting dollar liquidity within the economy.
Meanwhile, experts at Cowry Asset Management and Comercio Partners believe greater transparency in the FX market and improved liquidity conditions have helped ease panic-driven demand for dollars. However, they cautioned that sustaining the naira’s recent gains will depend largely on Nigeria’s ability to attract stronger foreign exchange inflows through crude oil exports, diaspora remittances, and foreign direct investment. Without consistent inflows, analysts warn that maintaining long-term currency stability could remain a challenge.
source: Guardian