Key points:
Official CBN (NAFEX) Rate: ₦1,419.66 / USD
Black-Market Rate: ₦1,490 / USD
Drivers: Central Bank of Nigeria (CBN) intervention with a $50 million injection into the official market; Stronger external inflows from Foreign Portfolio Investors (FPIs); Improving current account dynamics.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira extended its appreciation at the official market on Tuesday, January 13, gaining against the US Dollar, Pound, and Euro. This uptick was directly supported by a fresh $50 million injection from the CBN, aimed at defending the currency and providing liquidity amidst positive foreign investor sentiment.
FAQ
- What's the gap between CBN & black-market rates? The premium remains wide at approximately ₦70.34. The CBN's intervention successfully boosted the official rate, but the parallel market rate held steady, indicating that the underlying high demand and supply dynamics in the informal sector remain unchanged.
- Will the naira strengthen further? Continued strengthening in the official market is likely if the CBN sustains its supportive interventions and foreign investor inflows persist. However, achieving convergence with the parallel market requires addressing the structural factors that keep demand high in that segment.
- How do oil prices affect rates? While oil revenue is fundamental for reserves, the immediate driver of this appreciation was a direct CBN market intervention. This action underscores that proactive liquidity management by the central bank can provide short-term support for the Naira, independent of daily oil price fluctuations.
