Despite CBN Intervention, Naira Depreciates at Official Market

The naira, on Monday, dropped to N1,612 per dollar at the official side of the foreign exchange (FX) market.

The current rate represents the lowest since December 4, 2024, when the price of a dollar was N1,613.69.

At the Nigeria Foreign Exchange Market (NFEM), the local currency depreciated by 2.89 percent to N1,612.23/$ on Monday — from N1,567.02 traded on April 4.

At the parallel section of the market, the naira depreciated by 3.51 percent to N1,620 per dollar on April 8 — from N1,565 per dollar on April 7.

The development comes despite the Central Bank of Nigeria’s (CBN’s) injection of $197.71 million into the foreign exchange market on April 4.

The regulator had said the decision was part of its commitment to ensuring adequate liquidity and maintaining orderly market functioning.

“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71m through sales to authorised dealers. This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market,” the apex bank said.

The move followed the recent negative adjustments in global stock markets, triggered by President Donald Trump’s announcement of sweeping global tariffs on all imports into the country.

Commenting on the CBN sale, Aminu Gwadabe, president of Association of Bureau De Change Operators of Nigeria (ABCON), asked the bank to inject liquidity into the interbank market and the critical retail end to meet the demand for invisible transactions and small and medium-sized enterprises.