Key points:
Official CBN Rate: ₦1,363.39 / USD
Black-Market Rate: ₦1,375 / USD
Drivers: Sustained depreciation throughout the week across both market segments; Confirmation by President Tinubu that the CBN has mopped up dollars from the market; External reserves rising to $49.51 billion, a new high.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira recorded significant weekly losses across both official and parallel markets, depreciating by ₦17.07 week-on-week at the official window and a sharp ₦58 at the black market. This bearish performance follows confirmation of CBN dollar mop-up operations, even as external reserves climbed to a new high of $49.51 billion.
FAQ
- What's the gap between CBN & black-market rates? The premium narrowed to approximately ₦11.61. The parallel market's more severe weekly depreciation (₦58 vs ₦17) has brought the two rates closer together, though this convergence comes from broad-based weakness rather than strength.
- Will the naira strengthen soon? The sustained weekly decline across both markets signals persistent pressure. The confirmation of CBN dollar mop-up operations suggests a tightening of liquidity, which may continue to weigh on the currency in the near term, despite the record-high external reserves providing a long-term buffer.
- How do oil prices affect rates? The record external reserve position of $49.51 billion, a key strength indicator, is fundamentally supported by oil revenues. However, the current market weakness demonstrates that even a strong reserve buffer does not automatically prevent depreciation if the CBN is actively mopping up dollars and reducing market liquidity.
