The Central Bank of Nigeria (CBN) used approximately $669 million in foreign exchange interventions during the first quarter of 2025 in a bid to prop up the naira from further weakening. In a report by investment house AIICO Capital Limited, dollar sales totaling $668.8 million were made in the face of falling dollar inflows and rising offshore demand for foreign exchange.
The report highlighted that despite such interventions, the Nigerian currency continued to be severely pressured, as the naira dipped by 2.97 percent during the month of March alone from ₦1,492.49/$ to ₦1,536.82/$. The exchange rate had started the month at ₦1,510/$, and high demand—particularly by foreign portfolio investors and domestic corporates—continued to weigh down the market. The parallel market witnessed the same tension, with the naira losing ₦43.50 to close at ₦1,536.00/$.
In another move to stabilize the parallel market, the CBN directed Bureau de Change operators to purchase $25,000 from authorized dealer banks at the official exchange rate. This notwithstanding, Nigeria’s external reserves declined to $38.31 billion at the quarter-end, reversing from a three-year peak of $43 billion due to debt service commitments and consistent dollar sales.
The AIICO report further pointed out that whereas mid-month liquidity was briefly ensured by CBN injecting dollars, it was inadequate to halt the sustained demand on the Nigerian Foreign Exchange Market. The naira continued to weaken, therefore, despite the intervention by the central bank and incremental gains.
The Nigerian currency volatility is happening amid global economic uncertainty. President Donald Trump’s sweeping tariffs rocked global markets, sending stocks tumbling at Monday’s opening, adding to investors’ woes and mounting pressure on emerging market currencies like the naira
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