Key points:
Official CBN (NAFEX) Rate: ₦1,386.72 / USD
Black-Market Rate: ₦1,410 / USD
Drivers: Shrinking FX liquidity with interbank deals declining; CBN intervention of $95 million insufficient to meet high dollar demand; External reserves falling 0.7% to $49.48 billion ($350 million depletion); Dollar index strengthening as safe-haven demand persists.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira weakened further at the official market on Tuesday, depreciating 0.23% to ₦1,386.72/$ amid shrinking FX liquidity. Despite a $95 million CBN intervention, high safe-haven demand for the dollar continues to pressure the currency, with external reserves declining by $350 million to $49.48 billion.
FAQ
- What's the gap between CBN & black-market rates? The premium stands at approximately ₦23.28. The parallel market remained unchanged while the official rate weakened, resulting in a narrowed spread as the two markets moved closer together.
- Will the naira strengthen further? Near-term pressure persists due to high dollar demand as a safe-haven asset and declining reserves. The $95 million CBN intervention was insufficient to offset demand, and with interbank liquidity shrinking, continued weakness may persist unless external inflows improve or dollar demand moderates.
- How do oil prices affect rates? While the article notes that geopolitical tensions, including potential diplomatic developments between Iran and the US, influenced global markets, Nigeria's external reserves fell to $49.48 billion, reflecting sustained pressure on the FX buffer. The combination of high dollar demand and reserve depletion continues to weigh on the Naira's value.
