CBN BOOSTS FX INTERVENTIONS TO $953M AS DEMAND REBOUNDS

The Central Bank of Nigeria increased its foreign exchange interventions to $953 million as demand for foreign currency rebounded in the market.

The increased intervention reflects the apex bank’s efforts to support liquidity in the foreign exchange market and improve stability amid changing demand conditions.

The CBN has continued to use various measures to strengthen the supply of foreign exchange and support an orderly functioning of the market.

Analysts said increased interventions could help ease short-term pressure on the naira by improving the availability of foreign currency to eligible market participants.

They noted that sustained stability in the foreign exchange market would depend on stronger inflows from exports, foreign investment, remittances, and other sources.

The rise in demand for foreign exchange comes as businesses continue to require dollars for imports, international payments, and other legitimate transactions.

Market operators said improved liquidity could support businesses and reduce some of the uncertainty associated with foreign exchange availability.

However, analysts cautioned that interventions alone may not be sufficient to address Nigeria’s long-term foreign exchange challenges.

They called for policies that would increase non-oil exports, attract foreign capital, improve productivity, and strengthen confidence in the economy.

The CBN has also continued to implement reforms aimed at improving transparency and efficiency in the foreign exchange market.

Stakeholders said consistent policy implementation would be important to sustaining investor confidence and reducing volatility.

The increased intervention highlights the CBN’s continued role in managing liquidity as foreign exchange demand evolves.

Analysts said stronger and more sustainable inflows would ultimately be necessary to reduce pressure on the naira and support long-term stability in Nigeria’s foreign exchange market.