CBN Dollar Intervention: Naira Settles at N1,447 as Central Bank Injects $537 Million
The Central Bank of Nigeria (CBN) intervened in the foreign exchange market with a total of $537 million in November, providing crucial support to the naira amid persistent volatility. The official exchange rate closed the month at N1,447.95 per dollar, reflecting a modest appreciation following targeted liquidity injections by the apex bank.
At the start of November, the CBN deployed $50 million to ease demand pressures, but the naira still slipped slightly, weakening by 0.2% to N1,441.89/$1. A subsequent $50 million intervention, combined with rising non-oil export inflows and improved market confidence, helped the currency rebound to N1,435/$1. However, heightened corporate demand ahead of the festive season quickly offset these gains.
Renewed pressure on the naira prompted the CBN to inject a further $250 million into deposit money banks, yet the currency still fell by 1.5% to N1,457.38/$1. In the final week of November, strategic interventions totaling $186.6 million, alongside inflows from offshore investors, helped the naira regain stability, closing at N1,447.95/$1. Analysts noted that these moves provided short-term relief but underscored the fragility of market stability.
Governor Olayemi Cardoso announced that the CBN is finalizing a revised foreign exchange (FX) manual aimed at enhancing transparency, strengthening documentation, and widening market participation. Speaking at the Chartered Institute of Bankers of Nigeria (CIBN) annual dinner in Lagos, Cardoso highlighted the reforms as part of broader efforts to stabilize the naira and deepen the FX market.
Looking ahead, analysts remain cautiously optimistic. While they forecast the naira could end the year around N1,458/$1, they warned that short-term volatility may persist due to increased import demand during the festive season and ongoing global uncertainties. Standard Bank projected the naira at N1,458.8/$1 by year-end, with potential pressures extending into 2026 if interventions are not sustained.
source: The sun