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Daniel Adaji
The Central Bank of Nigeria (CBN) has injected another $124m totalling $321m into the foreign exchange market within just three trading days.
According to credible sources, the apex bank first pumped $197m into the FX market on Friday, followed by an additional $124m on Monday morning—an amount that was reportedly absorbed by the market before 10 a.m.
The intervention comes on the heels of global economic tension exacerbated by recent tariff hikes announced by U.S. President Donald Trump, which have placed additional pressure on emerging markets, including Nigeria.
Despite ongoing concerns over the nation’s foreign reserves, financial experts have largely thrown their weight behind the CBN’s aggressive defense of the naira.
Prominent economist Bismark Rewane supported the bank’s strategy, describing it as a “needed fiscal intervention to bring the local currency on track.”
Speaking in a follow-up to his earlier remarks on Channels Television, Rewane noted that Nigeria had previously spent up to $8bn in its efforts to prop up the naira.
“Supporting an undervalued currency is necessary,” he said, emphasising that currency defense falls within the core mandate of any central bank.
He added that the naira is currently undervalued by approximately 26.35 per cent, making it economically sensible for the CBN to step in to correct market misalignments. Rewane also referenced similar interventions by other countries facing comparable fiscal pressures.
The impact of the CBN’s latest moves is already being felt in the market. As of Monday, the naira was trading at N1,549.75 per U.S. dollar in the open market—just N17 stronger than what was recorded by the West Africa Money Agency earlier the same day.