Key points:
Official CBN (NAFEX) Rate: ₦1,378.70 / USD
Black-Market Rate: ₦1,405 / USD
Drivers: Surge in interbank turnover to $116.2 million from $30.9 million the previous day; Easing pressure on local currency; Foreign reserves at $49.29 billion (down $547 million from the March 11 peak of $50.03 billion).
Top Tools: NAFEX Data, CBN Forex Portal, Aboki Fx
The Naira appreciated across both official and parallel markets on Wednesday, gaining 0.58% to close at ₦1,378.70/$ officially and strengthening by ₦5 on the black market. This positive performance was driven by a sharp increase in interbank turnover, which surged nearly fourfold to $116.2 million, easing pressure on the local currency.
FAQ
- What's the gap between CBN & black-market rates? The premium narrowed to approximately ₦26.30, reflecting the parallel market's appreciation alongside the official market. The reduced spread suggests improved liquidity and alignment between both market segments.
- Will the naira strengthen further? The sharp increase in interbank turnover, from $30.9 million to $116.2 million, indicates improved market activity that could support further gains. However, reserves have declined by $547 million from their March peak of $50.03 billion to $49.29 billion. The decline is gradual rather than sharp, suggesting pressure remains under control but warrants monitoring.
- How do oil prices affect rates? The article notes that crude oil prices were influenced by geopolitical developments, including Trump's hints at ending the Iran war, which caused a 2% slip in oil prices. While this could impact future FX inflows, the current appreciation is more directly tied to the surge in interbank turnover and improved liquidity rather than immediate oil price movements.
