Key points:
Official CBN (NAFEX) Rate: ₦1,442.51 / USD
Black-Market Rate: ₦1,480 / USD
Drivers: Market reassurance by the Finance Minister, Wale Edun, easing investor concerns over recent security operations; Continued Central Bank of Nigeria (CBN) interventions, including a $150 million sale last week.
Top Tools: FMDQ for NAFEX Data, CBN Forex Portal, Aboki Fx
The Naira appreciated across all major FX market windows on Monday, resuming trade after the Christmas holiday. The gain follows a public statement from the Finance Minister aimed at reassuring international markets about Nigeria's economic and security stability, which helped bolster confidence in the local currency.
FAQ
- What's the gap between CBN & black-market rates? The premium stands at approximately ₦37.49, reflecting persistent, but slightly eased, pressure in the parallel market as official rates strengthened.
- Will the naira strengthen further? Near-term stability is expected. The currency is underpinned by recent CBN interventions and sustained policy confidence. Its continued performance will depend on maintaining this investor confidence and meeting forex demand.
- How do oil prices affect rates? While foundational to the economy, the immediate appreciation was driven by a different factor: a reduction in political risk perception. Minister Edun's statement successfully calmed markets, demonstrating how geopolitical and policy communications can directly impact currency value in the short term.
