Key points:
Official CBN (NAFEX) Rate: ₦1,359.82 / USD
Black-Market Rate: ₦1,365 / USD
Drivers: Fourth consecutive session of Naira decline; Surge in foreign payments outpacing available dollar supply; CBN intervention of $100 million on Tuesday failed to reverse trend.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira recorded its fourth straight day of decline at the official market on Thursday, depreciating further to ₦1,359.82/$1. Despite a $100 million CBN intervention earlier in the week, persistent foreign payment demand continues to outpace available dollar supply, though analysts maintain the currency remains within its expected ₦1,350–₦1,450 trading range.
FAQ
- What's the gap between CBN & black-market rates? The premium has narrowed to approximately ₦5.18, one of the tightest spreads in recent memory. This convergence reflects relative stability in the parallel market even as the official rate experiences a sustained decline.
- Will the naira strengthen further? The current downtrend is notable but not alarming to analysts, as the currency remains within its projected trading range. The CBN's recent $100 million intervention demonstrates its willingness to act, though the continuation of the decline suggests that more significant measures may be needed if foreign payment surges persist.
- How do oil prices affect rates? The article does not directly cite oil price movements, but the underlying challenge, foreign payments outpacing dollar supply, relates to the broader availability of FX, which is fundamentally tied to oil revenues and other inflows. The CBN's intervention capacity is supported by Nigeria's external reserves, which are bolstered by oil earnings.
