Key points:
Official CBN (NAFEX) Rate: ₦1,418.95 / USD
Black-Market Rate: ₦1,480 / USD
Drivers: Improved foreign exchange market efficiency and higher capital inflows; A current account surplus and broad-based economic recovery; Sustained diaspora remittances; External reserves rising to an eight-year high of $46.01 billion.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira appreciated across both the official and parallel markets on Monday, extending its positive performance. The currency is projected to maintain this momentum in the near term, supported by a favorable supply environment, rising reserves, and strong economic fundamentals.
FAQ
- What's the gap between CBN & black-market rates? The premium narrowed to approximately ₦61.05 as both markets strengthened. This reduction reflects improved efficiency and liquidity, moving towards greater convergence
- Will the naira strengthen further? The outlook is positive, with expectations for the currency to continue trading within a strengthened range. This is buoyed by a current account surplus, high capital inflows, and external reserves at an eight-year peak ($46.01bn), creating a robust foundation for sustained gains.
- How do oil prices affect rates? While oil revenue contributes to the record-breaking external reserves, the current appreciation is attributed to a broader set of factors, including improved market efficiency, diaspora inflows, and a current account surplus. This indicates a diversifying support base for the Naira beyond just crude oil earnings.
