How CBN Spent $669m In Q1 2025 To Defend Naira – Report
The Central Bank of Nigeria (CBN) deployed a total of $668.8 million in foreign exchange (FX) interventions during the first quarter of 2025 in a bid to defend the naira from further depreciation amid rising demand for the greenback and dwindling dollar inflows.
According to a market report by AIICO Capital Limited, the CBN’s dollar sales were aimed at curbing volatility and providing temporary relief to Nigeria’s strained currency, which has come under persistent pressure in recent months.
The move, however, did little to halt the slide of the naira, which depreciated by 2.97% in March alone.
The report revealed that the apex bank, in a separate attempt to stabilise the parallel market, also instructed Bureau de Change (BDC) operators to purchase $25,000 weekly from authorised dealer banks at the official exchange rate.
Despite these interventions, both the official and parallel markets recorded further depreciation of the local currency due to sustained pressure from foreign portfolio investors and local corporates.
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In March 2025, the naira slipped from ₦1,492.49/$ to ₦1,536.82/$ in the Nigerian Foreign Exchange Market (NFEM), while the parallel market rate also dropped by ₦43.50, closing at ₦1,536.00/$.
Although mid-month liquidity improved briefly following CBN’s injections, FX demand continued to surpass supply.
The report added that Nigeria’s external reserves, which peaked at $43 billion, declined to $38.31 billion by the end of Q1 due to persistent dollar sales and debt service obligations.
The development comes amid global economic tensions, including the ripple effects of President Donald Trump’s new tariff policy, which unsettled global markets and further complicated FX inflows for emerging economies like Nigeria.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
