Key points:
Official CBN Rate: N1,463.45 / USD (NAFEM)
Black-Market Rate: N1,490 / USD (Parallel)
Drivers: CBN reforms (curbing speculation, increasing liquidity), improved oil revenues, and a rise in offshore portfolio inflows.
Top Tools: FMDQ Securities Exchange, AbokiFX, Nairametrics
The Naira appreciated further against the Dollar by N1.84 at the official NAFEM window, closing at N1,463.45/$. This continued momentum is fueled by the Central Bank of Nigeria's (CBN) ongoing reforms, which are reducing speculative activities and boosting market confidence through liquidity injections. The domestic currency also strengthened against the Pound and the Euro.
- What’s the gap between CBN & black-market rates? The current gap is N26.55 (N1,490 vs N1,463.45), showing a relatively narrow spread, which is a positive sign reflecting the success of CBN's regulatory compliance and liquidity efforts.
- Will the naira strengthen soon? The immediate sentiment is positive due to high liquidity and the CBN's efforts. However, pressure remains as analysts note foreign investors are still selling local assets, limiting the dollar supply and capping further strong gains.
- How do oil prices affect rates? Improved oil revenues are a major supporting factor for the local forex market. Higher oil earnings increase the inflow of the US Dollar into the country, which improves overall market liquidity and helps stabilize the Naira's value.
