Key points:
Official CBN (NFEM) Rate: ₦1,354.86 / USD
Black-Market Rate: ₦1,425 - ₦1,440 / USD (range)
Drivers: Effective Central Bank of Nigeria (CBN) liquidity management through the Electronic Foreign Exchange Matching System (EFEMS); A Monetary Policy Rate (MPR) positioned to support domestic stability; Sufficient dollar supply meeting early-week corporate and retail demand.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira maintained a stable yet cautious position on Tuesday, trading within the ₦1,350 range in the official market. A slight intraday adjustment was observed as the market absorbed early-week corporate demand, but the currency remains well-anchored below ₦1,400/$1 for over two weeks, supported by transparent pricing systems and adequate dollar supply.
FAQ
- What's the gap between CBN & black-market rates? The premium remains in a narrowed and stable range of approximately ₦70 to ₦85. This continued modest spread is deterring speculative hoarding and fostering a predictable environment for consumers and small businesses, reflecting the success of ongoing market reforms.
- Will the naira strengthen further? The outlook for February is positive, with the currency well-positioned to maintain its current range. The Naira's ability to reclaim its opening strength will be a key indicator. Sustained stability is supported by Nigeria's external reserves, which provide a necessary buffer against any external shocks.
- How do oil prices affect rates? While not directly mentioned as a driver for this specific session, the health of Nigeria's external reserves, the primary buffer cited for stability, is fundamentally linked to oil revenues. These reserves underpin the CBN's capacity to maintain the transparent systems (like EFEMS) and liquidity management that are currently keeping the Naira stable and below key thresholds.
