The Central Bank of Nigeria (CBN) significantly increased its foreign exchange interventions in March 2026, selling $953.41 million into the market as demand for foreign currency picked up. The latest figures point to a renewed effort by the apex bank to strengthen dollar liquidity and maintain stability in the foreign exchange market after relatively low interventions in the first two months of the year.
According to data from the CBN’s latest Quarterly Statistical Bulletin, March recorded the highest level of foreign exchange sales since April 2025, when the bank supplied about $1.65 billion. The March intervention marked a sharp turnaround from the $244.13 million sold in February and just $58.93 million in January, representing an increase of about 291 per cent from February and more than 16 times the January figure.
Most of the March intervention came through spot market transactions, which accounted for $950.10 million, while another $3.31 million was allocated to Ministries, Departments and Agencies. The figures highlight how the CBN continues to use targeted interventions to respond to changing market conditions, particularly when demand pressures begin to affect dollar liquidity.
The development comes as Nigeria’s foreign exchange market continues to adjust to reforms introduced following the unification of exchange rates in 2023. While CBN interventions remain important, autonomous inflows from exporters, investors and other private-sector participants have become increasingly significant sources of foreign currency. This has reduced the need for the central bank to maintain the heavy intervention levels seen in previous years.
The March rebound, therefore, suggests that the CBN is taking a more strategic approach to managing the FX market rather than constantly supplying large volumes of dollars. As demand rises, periodic interventions can help smooth liquidity and support orderly market operations, while stronger private-sector inflows continue to play a bigger role in determining the direction of Nigeria’s foreign exchange market.
source: punch
