Naira Slips as CBN Sells $50m to Banks at New Rates

The Central Bank of Nigeria (CBN) has stepped up its intervention in the foreign exchange market by selling $50 million to commercial banks on Tuesday, May 27, in a bid to stabilise the naira amid renewed demand pressure.

Authorised dealer banks received the foreign currency at exchange rates ranging between ₦1,581 and ₦1,581.92 to the dollar. However, the local currency still weakened slightly in the official market, ending a two-week streak of modest appreciation.

Market data revealed that the naira fell to ₦1,583.73 against the US dollar on Tuesday. In intraday trading, rates fluctuated, hitting a high of ₦1,591 and a low of ₦1,581.92 as demand surged.

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An economist and senior banking executive, Janet Ogochukwu, noted that the depreciation was driven by weaker inflows from export and FX transactions. Despite this setback, she remains optimistic about the CBN’s overall efforts.

“The apex bank appears committed to exchange rate stability,” she said. “They’ve continued quiet weekly interventions, which help manage volatility and prevent runaway depreciation.”

Just last week, the CBN injected $190 million into the FX market, a move that analysts say offered only temporary relief due to persistent market demand.

Meanwhile, the naira remained under pressure in the parallel market, trading at ₦1,620 per dollar—up from ₦1,610 a day earlier. This movement comes amid speculation that regulators may halt the $35,000 weekly foreign exchange allocation to bureau de change operators by the end of May.

Globally, the US dollar also faced headwinds, with the Dollar Index falling below the 99-point mark—its weakest level in over a month—amid lingering concerns about US fiscal policies and trade uncertainty.

Despite the fluctuations, Nigeria’s external reserves continued their upward trend, rising by $166.63 million within the week to reach $38.54 billion as of May 21, 2025. Analysts view this as a sign that the central bank is building financial buffers to shield the naira from global and domestic pressures.

In a recent briefing, CBN Governor Olayemi Cardoso reiterated the bank’s commitment to comprehensive reforms aimed at ensuring a stable, investor-friendly forex regime.