CBN intervenes to stabilize Naira rally as external reserves hit $46.91bn

The Central Bank of Nigeria (CBN) has initiated a reverse foreign exchange intervention to moderate the rapid appreciation of the local currency, purchasing $72 million from the official market to maintain stability.

The move came after the Naira surged to an intra-week low of ₦1,358 per dollar, representing an ₦87 gain since late December.

Following the Apex Bank’s mopping up of U.S. dollars, the exchange rate eased slightly to close the week at ₦1,366.19.

This upward trajectory in the Naira's value has been largely supported by a significant increase in gross external reserves, which rose by $736.67 million to reach $46.91 billion.

Analysts from TrustBanc and Anchoria Securities attribute this liquidity surge to elevated oil receipts, remittances, and strong offshore investor participation drawn by high yields on Nigerian investment securities.

Despite the slight easing following the CBN's intervention, the currency maintained a consistent appreciation trend throughout the week’s trading sessions.

Market stability is expected to persist in the near term, underpinned by declining speculative demand and improved investor confidence.

However, the broader economic landscape remains influenced by fluctuating global commodity prices, as Brent crude declined over 3% this week to $67.60 per barrel due to oversupply concerns.

Conversely, the gold market saw a significant rally, with spot prices gaining over $100 to close near $4,966.22 per ounce as buyers re-entered the market following a mid-week dip.