The naira appreciated by N1.00 against the US dollar at the official foreign exchange market on Thursday, closing at N1,328.22 per dollar, following a $151 million injection by the Central Bank of Nigeria (CBN). The recovery, which represents a 0.08% gain from the previous day's close of N1,329.22, was supported by the apex bank's intervention at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The local currency also strengthened against other major currencies, gaining N3.93 against the Pound Sterling to settle at N1,798.22/£1, and rising by N7.28 against the Euro to close at N1,540.99/€1. The CBN's move came after the naira faced significant pressure in the prior trading session amid rising demand for foreign currency.
CBN Sells $151 Million to Ease Demand Pressure
According to a market update from CardinalStone, the CBN offered the $151 million at rates ranging from N1,322.71 to N1,331.50 per dollar. The intervention was aimed at stabilizing the currency after a period of heightened demand. Nigeria's gross external reserves also rose to $54.283 billion, providing a larger buffer to defend the naira and absorb shocks from external economic pressures.
However, the naira did not perform uniformly across all channels. At GTBank's foreign exchange counter, the currency slipped by N10 to trade at N1,340 per dollar, compared with N1,330 recorded on Wednesday. At the parallel market, the rate held steady at N1,375 per dollar, leaving a gap of N46.78 between the street rate and the NAFEM rate.
Interbank Activity Surges as Turnover Jumps 69.82%
CBN data revealed a sharp increase in interbank FX activity during Wednesday's trading session. Turnover climbed by 69.82% to $94.43 million, up from $55.60 million in the previous session, representing an additional $38.82 million in transactions within a single day, as reported by Punch. The number of deals also rose to 86 from 58, an increase of 28 trades, or 48.28%.
The dollar traded within a range of N1,321.50 to N1,334 during the session, with a weighted average rate of N1,329.21 per dollar. The rise in both the number and volume of deals suggests broader participation across interbank market players, rather than a few large trades driving the numbers. Interbank transactions, however, remain only a portion of overall market activity. On Tuesday, total NFEM turnover reached $933.78 million, with interbank deals accounting for a fraction of that figure.
Banks Raise International Card Limits
In a related development, Legit.ng earlier reported that major Nigerian banks have increased the amounts customers can spend internationally on naira cards, as improved foreign exchange conditions give lenders more room to expand access to dollar transactions. GTBank, FirstBank, Zenith Bank, UBA, and Stanbic IBTC all announced higher limits in recent months. The adjustments walk back curbs that were put in place between 2023 and 2025.
