Naira rebounds against dollar amid CBN interventions, improved global sentiment

The Naira witnessed a significant rebound on Monday, April 14, 2025, appreciating to N1,599.00 per US dollar at the official foreign exchange window.

This marks a notable recovery from N1,626.00/$1 on Friday, April 11, and N1,630.50/$1 recorded on Thursday, April 10, according to official data published on the Central Bank of Nigeria’s (CBN) website.

This upward trajectory comes as a relief after the local currency had opened the previous week on a weaker note. On Monday, April 7, the Naira had dropped to N1,629.00/$1, falling from N1,600.00/$1 on Friday, April 4.

However, following days of volatility, the currency began to claw back its losses, culminating in Monday’s appreciable gain.

The parallel market also reflected a positive movement, with the Naira strengthening to N1,605.00/$1 on Monday, compared to N1,624.35/$1 on Friday.

Currency traders at Abuja’s Wuse Zone 4 exchange hub confirmed the rates, with one Bureau De Change (BDC) operator noting an improvement in dollar availability compared to the previous week.

Beyond the dollar, the Naira posted mixed performances against other major global currencies. Official market figures showed the Naira trading at N2,126.39 per Special Drawing Rights (SDR) and N1,770.13 per Euro, reflecting fluctuations across different currency baskets.

Market analysts and currency experts have pointed to a combination of reduced global economic tensions and proactive CBN interventions as key drivers behind the Naira’s rebound.

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“To be honest, it’s partly the Trump effect,” said financial analyst Tope Adepegba. “Don’t forget, [President] Trump relaxed some tariffs on China last week. That sent positive signals across emerging markets and helped calm investor nerves.”

Others credit the Central Bank’s ongoing foreign exchange interventions, which saw the apex bank inject substantial liquidity into the market.

According to sources, the CBN sold an estimated $200 million across various official channels last week in a bid to boost liquidity. This came after a prior injection of $197 million on Friday, April 4, and $124 million disbursed over the preceding week.

Currency traders say the CBN’s more consistent supply of dollars to BDC operators is helping to narrow the gap between official and parallel market rates, a long-standing concern in Nigeria’s foreign exchange landscape.

Economic observers suggest that the CBN’s recent actions signal an evolving FX strategy aimed at restoring investor confidence while ensuring essential sectors of the economy have access to stable forex supplies.

“This isn’t just about currency stability—it’s also about making sure those manufacturers and import-reliant businesses can function effectively,” said one FX market watcher.

“The narrowing spread between the official and parallel markets is a good sign of market alignment.”

As the foreign exchange market steadies and dollar liquidity improves, stakeholders remain cautiously optimistic that the Naira may continue on a path of recovery—if supported by sustained policy consistency and favourable global economic conditions.