The Central Bank of Nigeria (CBN) intervened twice in the foreign exchange markets last week, selling $170 million to authorised dealer banks to boost FX supply.

The latest FX sales boosted the US dollar sold to banks to $586 million, a strong stance the bank has maintained since the beginning of 2025.

According to the report, the CBN rescued the local currency from further depreciation caused by surging forex demand from companies seeking foreign currency payments.

Market Forces Africa reported that the Nigerian Foreign Currency Market (NFEM) saw an elevated demand for dollars, leading to the naira depreciating above $1,538 during intraday trading.

The financial sector regulator sold $170 million to banks in two tranches to ease rising pressures on the official rate, despite inflows from foreign portfolio investors (FPIs).

The CBN conducted open market operations, offering attractive rates to attract dollar inflows from offshore investors. The two auctions were well received, and the naira value allotted to investors hit N1.19 trillion.

The rates on OMO papers were higher than usual, reflecting CBN’s desire to drive forex inflows into the currency market. Also, Nigeria’s gross external reserves rose to $41.27 billion at the end of last month.

Meanwhile, the naira has continued to appreciate in the foreign exchange market.

Data from the CBN showed that the naira hit a six-month high at N1,526 per dollar as of Monday, September 1, 2025.

The Nigerian currency also appreciated in the parallel segment of the foreign exchange market, closing at N1,540 per dollar. “The naira will continue to surge as long as the reserves are buoyant, Janet Ogochukwu, senior banker and economist, told Legit.ng on a call.

“I am sure the CBN does not want the naira to fall or rise below or above a certain threshold. So, the interventions are in order,” she said.

Amid the naira’s rally, Nigerian banks have cut interest rates on naira debit cards, a prior report by Legit.ng said. On Monday, September 1, 2025, banks set the exchange rate for naira debit card payments at N1,542 per dollar, up from N1,545 last week.