By Gwurld4026 
Naira Defense: CBN Allocates $669M in Q1 2025
In the first quarter of 2025, the Central Bank of Nigeria (CBN) expended approximately $669 million in foreign exchange interventions to stabilize the naira. These efforts aimed to counteract the currency’s depreciation amid declining dollar inflows and increased offshore demand for foreign exchange.
Despite the CBN’s interventions, the naira experienced a 2.97% depreciation in March, falling from ₦1,492.49/$ to ₦1,536.82/$. The parallel market mirrored this trend, with the naira closing at ₦1,536.00/$. Additionally, the country’s external reserves decreased from a three-year peak of $43 billion to $38.31 billion during the quarter.
These developments underscore the challenges faced by the CBN in maintaining currency stability amidst global economic pressures, including trade tensions and fluctuating oil prices.
The situation highlights the need for continued policy adjustments and strategic interventions to support the naira and bolster Nigeria’s foreign exchange reserves.