LAGOS — The Nigerian naira staged a strong recovery on Wednesday, gaining N25.21 to close at N1,376.19/$1 at the official window, following the Central Bank of Nigeria’s (CBN) decision to resume dollar sales amid high reserve growth
According to market data published by the CBN, the naira’s 1.83% appreciation from Tuesday’s rate of N1, 401.40 comes as the CBN injected fresh liquidity to clear a portion of the demand backlog. According to a report by Coronation Merchant Bank’s research department. The apex bank sold approximately $314.2 million—roughly 25% of total market inflows last week—to stabilize the local currency.
The resumption of sales follows a period where the CBN reportedly accumulated dollars to bolster external reserves, which have now climbed to a significant $50.45 billion.
Governor Olayemi Cardoso recently noted that the current reserve level is sufficient to provide nearly 10 months of import cover, giving the bank a stronger cushion to intervene and curb the 15-day depreciation streak observed earlier this month.
In a parallel move to deepen retail liquidity, the CBN authorized the resumption of weekly foreign exchange sales to licensed Bureau De Change (BDC) operators in February.
Each eligible BDC is permitted to purchase up to $150,000. And sales are conducted at prevailing market rates. CBN also mandated BDCs to maintain a maximum margin of 1% when selling to end-users for “invisible” transactions like school fees, medical bills, and travel allowances (PTA/BTA)
While the official rate saw gains, the parallel market remained steady at N1,440/$1, widening the gap between the two windows to approximately N64. Analysts suggest that if the CBN maintains its current intervention frequency and continues to leverage the growing external reserves, the pressure on the naira could ease further in the coming weeks.
