Revealed! CBN invests $4.1bn in FX market to stabilise naira

• The Central Bank of Nigeria invested $4.1 cardinal successful the overseas speech marketplace during the archetypal fractional of 2025, much than 3 times the magnitude invested successful the aforesaid play successful 2024
• Despite these efforts to stabilise the naira, CSL Stockbrokers expressed concerns astir the semipermanent viability of the currency defence strategy, citing debased lipid revenues and subdued overseas portfolio concern
• The study noted that portion overseas concern successful Nigeria's banal marketplace increased, capitalist caution remains owed to continued overseas outflows and uncertainties successful outer financing

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

In bid to stabilise the naira and trim liquidity concerns successful the currency market, the Central Bank of Nigeria invested a full of $4.1 cardinal successful the overseas speech marketplace during the archetypal fractional of 2025.

The Central Bank of Nigeria invested $4.1 cardinal successful the overseas speech marketplace during the archetypal fractional of 2025. Photo Credit: CBN
Source: Getty Images

The astir caller H2 2025 Outlook study from CSL Stockbrokers included this amount, which is much than 3 times the $1.3 cardinal reported during the aforesaid play successful 2024.

The Punch reported that information from the study was analysed, and the results showed a 215% rise. CSL Stockbrokers Limited is simply a subordinate of the Nigerian Stock Exchange successful summation to the FCMB Group.

In airy of sluggish lipid revenues, muted overseas portfolio concern inflows, and uncertainty surrounding outer financing, industry observers voiced doubts astir the currency defence strategy's durability astatine this time.

Members of the Organised Private Sector countered that nary liable cardinal slope would fto the marketplace determine the worth of its currency connected its ain without intervening successful immoderate mode to support stability.

The CSL Stockbrokers' survey claims that the CBN's forceful engagement shows a greater dedication to protecting the naira successful the look of ongoing volatility and mediocre superior inflows.

Due successful large portion to these FX injections, the naira, which began the twelvemonth astatine N1,535 to the US dollar connected the authoritative market, accrued somewhat to N1,530/$ by the extremity of June.

The study read,

“The section currency, which opened the twelvemonth astatine astir N1,535/$ successful the authoritative market, posted a marginal appreciation to adjacent the archetypal fractional astatine astir N1,530/$, reflecting a YTD summation of 0.4 per cent. This comparative stableness was mostly underpinned by sizable interventions from the CBN, which we judge helped incorporate depreciation pressures, particularly during periods of heightened volatility.“Notably, the apex slope injected astir $4.1bn into the FX marketplace successful H1 2025, good supra the $1.3bn provided during the aforesaid play past year, demonstrating a stronger committedness to supporting marketplace liquidity.”

More changes

According to CSL, the apex bank's actions were peculiarly noticeable successful April, erstwhile the instauration of caller US commercialized tariffs caused capitalist hazard aversion to spike, causing the naira to momentarily autumn to N1,630/$.

“It is worthy highlighting that successful April, erstwhile overseas currency inflows were constricted and the speech complaint temporarily weakened to arsenic precocious arsenic N1,630/US$, amid capitalist hazard aversion triggered by the announcement of US commercialized tariffs, nett FX inflows from the CBN surged to the highest level truthful acold this year,” the study stated.

Notwithstanding the measures, CSL voiced doubts astir the currency defence strategy's semipermanent viability, pointing to debased lipid profits, muted overseas portfolio concern inflows, and unpredictability surrounding extracurricular funding.

Due to decreased prices and accumulation limitations, lipid exports, which made up implicit 86% of Nigeria's full exports successful 2024, are expected to diminution by 20% annually to $36.4 cardinal successful 2025.

Over 86% of Nigeria's full exports successful 2024, are expected to diminution by 20% annually to $36.4 cardinal successful 2025. Photo Credit: Naira
Source: Getty Images

Regarding the superior market, the study noted that overseas engagement successful Nigeria's banal marketplace accrued from 20% successful the aforesaid play of 2024 to 29% arsenic of May 2025.

The information that overseas outflows inactive exceeded inflows, however, suggests that capitalist caution is inactive present. CSL cautioned that determination whitethorn beryllium little country for further naira appreciation successful the 2nd portion of the twelvemonth if FX inflows proceed to beryllium pressured.

Naira appreciates to 4-Month High successful FX Market

Legit.ng reported that Nigeria’s section currency, the naira, recorded a large summation against the US dollar, closing astatine N1,518.88 at the authoritative marketplace arsenic of Monday, July 15, 2025.

This followed a targeted overseas speech (FX) involution by the Central Bank of Nigeria (CBN), aimed astatine improving marketplace liquidity and easing unit connected the naira.

According to spot FX information from the CBN, the naira’s spot came connected the heels of $50 cardinal successful income to authorised dealers during the erstwhile week.

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Source: Legit.ng