Central Bank of Nigeria Intervenes to Stabilize Volatile Naira

The Central Bank of Nigeria implemented a series of aggressive monetary directives between June 19 and June 22, 2026, to stabilize the naira following a period of extreme volatility. On June 19, the currency weakened, trading as high as N1,374 per dollar, driven by foreign portfolio investors selling domestic equities and converting proceeds into dollars for repatriation.

In response, the central bank raised the Monetary Policy Rate to 24.75 percent and resolved $7 billion in foreign exchange backlogs. These measures led to a significant surge on June 21, with the official rate closing at N1,136 per dollar and parallel market rates dropping to N1,050 per dollar due to low demand. The bank also reviewed exchange rates for Bureau De Change operators to N1,101 per dollar.

By June 22, the currency showed further signs of stabilization. The official window traded at N1,369 per dollar, while parallel market rates moved between N1,390 and N1,394. This narrowed the gap between official and parallel rates to N25 per dollar, down from N33.5. Despite the volatility, Nigeria's gross external reserves rose to $51.04 billion as of June 18, supported by diaspora remittances and crude oil exports, though a US-Iran agreement to reopen the Strait of Hormuz lowered global oil prices and may impact future inflows.