CBN Crashes Dollar as Naira Hits New High in Official Window

• Naira strengthens to N1,328.2154 per dollar after the CBN injects fresh liquidity into Nigeria’s official FX market
• CBN sells $151 million to banks as dollar transactions surge, supporting liquidity amid continued foreign exchange demand
• External reserves offer intervention capacity, but sustained naira gains depend on inflows, dollar demand and market stability

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The naira strengthened against the United States dollar in the official foreign exchange market after the Central Bank of Nigeria (CBN) injected fresh dollar liquidity into the system.

The local currency appreciated to N1,328.2154 per dollar at the Nigerian Foreign Exchange Market (NFEM), improving from N1,329.2129/$ recorded in the previous session.

The movement offered some relief after recent pressure on the currency and came as the apex bank stepped up intervention to meet demand and improve liquidity in the official market.

CBN sells $151 million to banks

The naira's latest gain was supported by the CBN's sale of $151 million to eligible deposit money banks.

The intervention followed renewed pressure on the local currency and was aimed at boosting dollar supply to financial institutions and supporting smoother transactions in the FX market.

Trading during the session was conducted within a range of N1,322.71 to N1,333 per dollar, indicating that the naira remained relatively stable despite continued demand for foreign currency.

CBN intervention in the market is closely watched by businesses, importers and investors because dollar availability can influence the cost of imports, production inputs and ultimately consumer prices.

Dollar transactions jump sharply

Activity among financial institutions also increased significantly during the session.

CBN data showed a sharp rise in dollar transactions, with turnover climbing strongly compared with the previous trading day.

The number of deals increased to 234 from 86 previously, highlighting a substantial rise in activity among authorised market participants.

The increase in transactions suggests improved liquidity, although sustained demand for dollars means the naira could still face periods of pressure.

For Nigerian businesses dependent on imported raw materials, machinery and finished goods, a stronger and more stable naira could help reduce uncertainty around replacement costs and pricing.

External reserves provide support

Nigeria's external reserves, reported at about $54.34 billion, could provide the CBN with additional room to support the FX market when necessary.

Higher reserves generally strengthen the central bank's ability to meet legitimate foreign exchange demand and respond to periods of excessive volatility.

However, repeated intervention can also indicate that underlying dollar demand remains CBN Crashes Dollar as Naira Hits New High in Official Window, meaning the sustainability of the naira's gains will depend on continued FX inflows and market liquidity.

Analysts expect the currency to remain around its current trading range in the near term, with movements largely determined by dollar demand, foreign inflows and the CBN's liquidity management.

For households and businesses, attention will now turn to whether the naira can consolidate its latest gains and whether the improvement eventually filters into prices in the wider economy.

Naira gains ground again as dollar falls

Legit.ng earlier reported that the Nigerian naira has extended its recent gains against the US dollar, strengthening to about ₦1,329 at the official foreign exchange market on September 1, 2026, as improved liquidity and rising external reserves provide fresh support for the currency.

The naira closed at ₦1,329.43 per dollar on September 1, compared with ₦1,332.94 the previous trading day, according to data from the Central Bank of Nigeria (CBN).