The Central Bank of Nigeria has taken decisive action to support the national currency by injecting approximately $36.60 million into the foreign exchange market this week. This strategic intervention comes as the naira experiences renewed depreciation pressures from both domestic and international economic factors.
Forex Market Receives Fresh Momentum
Nigeria's foreign exchange market witnessed significant activity following the CBN's intensified intervention strategy. The apex bank sold foreign currency directly to authorized dealers and commercial banks, including major financial institutions like Access Bank, UBA, and Zenith Bank, aiming to ease mounting pressure on the naira and stabilize the volatile market conditions.
The latest transaction, executed on Tuesday, represents part of the CBN's consistent approach to market management. This $36.60 million injection follows closely on the heels of a $40 million release distributed just last week, demonstrating the bank's commitment to maintaining liquidity in the forex market.
Immediate Impact on Naira Performance
Market data reveals the intervention produced tangible results, with the naira showing signs of strengthening shortly after the dollar distribution. Official trading records indicate the currency gained 23 basis points on Wednesday, appreciating by N3.40 to settle at N1,442.9201 per dollar.
Trading sessions saw the naira fluctuating between N1,445.00 and N1,436.50 against the US dollar, reflecting improved market liquidity and slightly reduced demand pressures. Financial analysts attribute this positive movement to enhanced dollar availability coinciding with a period of softened demand.
Expert Analysis and Economic Context
According to Janet Ogochukwu, a senior banker and economist, "The naira is being affected by both domestic and geopolitical headwinds, especially investment and forex inflow drought." She expressed confidence in the currency's recovery prospects, noting that "the naira will rebound due to the robust reserves" currently being accumulated by the nation.
Nigeria's external reserves continue to demonstrate resilience, with recent figures showing a single-day increase of $48.4 million, bringing the total to $44.5 billion as of November 25, 2025. This reserve growth occurs despite ongoing volatility in global energy markets, where Brent crude recently rose to $62.54 per barrel after previous declines.
The CBN's sustained interventions appear strategically timed to counter recent naira weaknesses observed in late November, when the currency dipped by 99 kobo or 0.07% to close at N1,443.91/$1 in the Nigerian Foreign Exchange Market (NAFEM). Similar pressure was evident against other major currencies, with the naira falling N6.50 against the pound sterling to finish at N1,913.03/£1.
Market observers suggest that the central bank's proactive approach is gradually restoring investor confidence and creating more stable trading conditions. The consistent dollar injections are designed to ensure adequate foreign exchange availability for critical business operations, international trade, and essential imports.
