Naira Weakens Despite CBN Intervention, Rising External Reserves

The Nigerian naira has softened against the US dollar despite the Central Bank of Nigeria's (CBN) foreign exchange intervention and a surge in external reserves. The local currency posted mixed performance across both official and parallel foreign exchange markets.

In the official market, the naira depreciated by 0.40% week-on-week to close at N1,326.52 at the Nigerian Foreign Exchange Market (NFEM). This weakness occurred despite $151 million FX intervention sales at the NFEM window, reflecting significant demand pressures that triggered dollar sales to banks.

However, in the parallel market, the naira rose to N1,370, leaving a gap of N44 between the official and informal segment rates. The CBN intervened amid rising external reserves, which analysts projected will keep the local currency stable ahead of the 2027 election dollar demand shock.