Key points:
Official CBN (NAFEX) Rate: ₦1,353.66 / USD
Black-Market Rate: ₦1,430 / USD
Drivers: Market correction from recent gains; Central Bank of Nigeria (CBN) policy allowing licensed BDC operators to purchase FX from the official market at prevailing rates; Ongoing reforms to formalize retail foreign exchange supply.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira experienced a pullback on Thursday, depreciating by 0.35% in the official market as the currency corrected from its recent historic highs. This move comes alongside a significant CBN policy update permitting licensed BDC operators to access FX directly from the official market, a reform aimed at formalizing retail supply and potentially influencing future exchange rate dynamics.
FAQ
- What's the gap between CBN & black-market rates? The premium narrowed slightly to approximately ₦76.34. The official rate weakened while the parallel market held steady, resulting in a slightly reduced spread compared to previous days.
- Will the naira strengthen further? The correction is viewed as a natural market adjustment following recent gains. The medium-term outlook remains tied to the impact of ongoing reforms, including the new BDC access policy. ABCON expects this move to help stabilize the exchange rate as operators begin accessing dollars through formal channels, potentially improving supply and reducing pressure.
- How do oil prices affect rates? While not directly cited for this specific pullback, the CBN's ability to implement reforms and maintain market confidence is underpinned by the strength of external reserves, which are supported by oil earnings. The new BDC policy aims to improve the efficiency of retail dollar distribution, complementing the foundational supply from sources like oil exports.
