CBN Dollar Sales Drop 69% to $1.67 Billion as Private FX Inflows Increase

The Central Bank of Nigeria (CBN) bought $1.67 billion in overseas change through the first six months of 2026, representing a 69% decline from the $5.41 billion recorded within the corresponding interval of 2025.

The discount of roughly $3.74 billion introduced the apex financial institution’s greenback gross sales to their lowest first-half stage in 5 years, in accordance with figures from its quarterly statistical bulletin.

Despite the sharp decline in direct greenback gross sales, Nigeria recorded a rise in overseas change inflows, with complete receipts rising 12.7% to $63.82 billion from $56.62 billion a 12 months earlier.

A breakdown of the figures confirmed that autonomous sources, together with overseas investments, export proceeds and remittances, contributed $45.5 billion, in contrast with $38.3 billion within the first half of 2025.

This represents an 18.8% enhance with autonomous sources accounting for roughly 71% of complete overseas change inflows through the interval.

The figures point out that personal market members are taking part in a bigger position in supplying overseas forex to the Nigerian financial system, decreasing the necessity for the CBN to promote {dollars} instantly into the market.

Nigeria’s overseas change market has undergone vital modifications for the reason that introduction of change price reforms in June 2023, when the federal government moved in the direction of a extra market-driven pricing system.

The reforms have been meant to enhance transparency, entice overseas funding and scale back distortions created by a number of change charges.

For companies, elevated greenback availability via industrial banks and different market members might enhance entry to overseas forex for imports, worldwide funds and different professional transactions.

However, the sustainability of the development will rely on the sources of the inflows and whether or not they can persistently meet demand.

Foreign portfolio investments, as an illustration, can present substantial greenback liquidity when Nigerian monetary property provide enticing returns. Such investments can be withdrawn shortly when worldwide rates of interest, change price expectations or investor sentiment change.

This makes export earnings, overseas direct funding and remittances significantly necessary to the long-term stability of the overseas change market.

Nigeria’s complete overseas change outflows additionally declined through the interval, falling 25.5% to $19.98 billion from $26.85 billion within the corresponding interval of 2025.

The mixture of upper inflows and decrease outflows strengthened the nation’s general overseas change place, though these transactions shouldn’t be confused with modifications within the CBN’s exterior reserves.

While the discount in greenback gross sales suggests much less reliance on direct intervention, it doesn’t imply the central financial institution has withdrawn completely from the market.

The CBN retains the flexibility to produce overseas change when mandatory to handle liquidity shortages or extreme change price volatility.

The longer-term take a look at shall be whether or not Nigeria can keep enough greenback provide via exports, remittances and funding inflows with out requiring frequent large-scale interventions from the central financial institution.