Naira Cools as CBN Intervenes to Tame Currency Rally

The Nigerian naira's recent surge has begun to moderate in the official foreign exchange market following intervention by the Central Bank of Nigeria (CBN).The CBN has been purchasing dollars in the market to temper the pace of the local currency's appreciation, which had gained significant ground in recent trading sessions. The central bank's action aims to prevent excessive volatility and maintain orderly market conditions.Currency traders noted that the naira pared some of its gains as the CBN's dollar-buying activity absorbed liquidity and reduced upward pressure on the local unit. The intervention reflects the central bank's balancing act between supporting the currency and avoiding an overcorrection.The naira's recent strengthening had been driven by improved dollar inflows and policy reforms, but authorities are keen to ensure the rally remains sustainable without disrupting export competitiveness or market stability.