Naira Strengthens to N1,615/$1 Amid CBN’s Sustained Forex Interventions
Samuel Mobolaji
The Nigerian naira appreciated to N1,615.00 per US dollar at the official foreign exchange market on Tuesday, marking an improvement from Monday’s rate of N1,629.00/$1. This uptick is attributed to the Central Bank of Nigeria’s (CBN) ongoing efforts to stabilize the currency through substantial foreign exchange interventions.
In response to recent pressures on the naira, the CBN injected approximately $197.71 million into the forex market. This move aims to bolster liquidity and mitigate the adverse effects of external economic shocks, such as the global market disruptions following tariff impositions by former U.S. President Donald Trump, which led to a decline in crude oil prices—a critical source of Nigeria’s foreign exchange earnings.
Despite these interventions, the naira experienced fluctuations, previously depreciating to N1,629.00/$1. Analysts suggest that while the CBN’s dollar sales have provided temporary relief, sustained stability may require addressing underlying factors affecting forex demand and supply.
Furthermore, Nigeria’s net foreign exchange reserves have seen a notable increase, reaching $23.11 billion by the end of 2024—the highest in three years. This growth is largely due to reductions in short-term foreign exchange liabilities and an uptick in non-oil forex inflows.
The CBN remains committed to implementing policies aimed at enhancing market confidence and ensuring long-term stability of the naira. Market observers will continue to monitor the effectiveness of these measures in achieving sustained currency stability.
About The Author
