Key points:
Official CBN (NFEM) Rate: N1,396.98 / USD
Black-Market Rate: N1,468 - N1,480 / USD (range)
Drivers: Increased liquidity from cleared historic FX backlogs; Successful operation of the Electronic Foreign Exchange Matching System (EFEMS); Rising external reserves; Refined price discovery mechanisms by the Central Bank of Nigeria (CBN).
Top Tools: CBN Forex Portal, Aboki FX
The Naira maintained its bullish momentum on Thursday, trading firmly below the N1,400/$1 threshold in the official market. This sustained strength is credited to the CBN's successful policy implementation, which has cleared backlogs, boosted confidence, and created a more predictable trading environment.
FAQ
- What's the gap between CBN & black-market rates? The premium has contracted significantly to a range of approximately N71 to N83. This narrowing spread indicates that the gains and stability in the official market are beginning to influence the parallel segment, though a notable difference remains due to persistent retail demand dynamics.
- Will the naira strengthen further? The outlook is positive for consolidation. Experts anticipate the currency could stabilize within the N1,390 – N1,400 range if the CBN maintains its current strategy and crude oil production supports reserves. The week's closing figures will be crucial for setting the tone for February's performance.
- How do oil prices affect rates? Steady crude oil production is cited as a key factor for the Naira to consolidate its gains. While direct policy tools like the EFEMS are driving the current appreciation, consistent oil revenue is fundamental to maintaining the external reserves that underpin these policies and provide the CBN with the capacity for continued market intervention.
