The Central Bank of Nigeria increased its foreign-exchange market interventions to approximately $953 million in March 2026 [1].
This surge in liquidity is intended to stabilize the naira by ensuring that the supply of dollars keeps pace with rising demand. Frequent volatility in Nigeria's currency market can disrupt imports and fuel inflation, making the central bank's role as a liquidity provider critical for macroeconomic stability.
Reports said the bank provided $953.41 million [2] to the market during the month of March 2026 [1]. This intervention came as a response to rebounding demand for foreign currency. The central bank sought to shore up liquidity after experiencing weak sales earlier in the year [1].
Market participants have watched the central bank closely as it balances the need to support the currency without depleting foreign reserves. By injecting nearly $1 billion into the system, the bank aims to cushion the naira against global headwinds and internal demand spikes.
The move reflects a strategic shift to address the gaps left by previous months of lower activity. The increased availability of dollars is expected to help businesses meet their obligations, and reduce the reliance on parallel markets where rates are often higher and more volatile.
“The Central Bank of Nigeria increased its foreign-exchange market interventions to approximately $953 million.”
The scale of this intervention suggests that the Central Bank of Nigeria is prioritizing short-term currency stability over the preservation of reserves. By aggressively meeting the rebounding demand for dollars, the bank is attempting to prevent a sharp devaluation of the naira, which would otherwise increase the cost of imports and heighten inflationary pressures across the Nigerian economy.
