Key points:
Official CBN Rate: ₦1,337 / USD
Black-Market Rate: ₦1,382.50 / USD
Drivers: Improved dollar liquidity in the official market; Shifting global geopolitical sentiment (diplomatic talks easing tensions), boosting risk appetite for emerging market currencies; Strongest official closing rate since May 2024.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira surged to its strongest official closing rate since May 2024, appreciating to ₦1,337/$1 on Tuesday. This gain was driven by improved dollar supply and positive global sentiment from ongoing peace talks, which boosted appetite for emerging market currencies like the Naira.
FAQ
- What's the gap between CBN & black-market rates? The premium narrowed significantly to approximately ₦45.50. This substantial reduction in the spread indicates that the improved conditions and sentiment are positively impacting both market segments, with the parallel market also strengthening notably.
- Will the naira strengthen further? The outlook is cautiously optimistic. The currency's performance is now at its strongest level in nearly two years. Future direction will be influenced by global factors (like Fed policy signals and upcoming US GDP data) and domestic events, particularly the CBN's MPC meeting scheduled for February 23-24, 2026.
- How do oil prices affect rates? While not directly cited for this specific move, the CBN's capacity to maintain improved liquidity and manage the FX market is underpinned by Nigeria's external reserves, which are fundamentally supported by oil revenues. The current stability and appreciation provide the central bank with a stronger foundation as it heads into its upcoming policy meeting.
