Key points:
Official CBN (NFEM) Rate: ₦1,366.53 / USD
Black-Market Rate: ₦1,445 - ₦1,460 / USD (range)
Drivers: Consistent CBN interventions and a transparent electronic trading framework; Macroeconomic stability from a moderating inflation rate (15.15%) and a steady Monetary Policy Rate (MPR) of 27.00%; Successful channeling of demand into the official window.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira closed the first week of February with steady momentum, maintaining its position below the ₦1,400/$1 threshold in the official market. This resilience is supported by tight monetary policy, moderating inflation, and effective CBN measures that have also fostered calm and a narrow spread in the parallel market.
FAQ
- What's the gap between CBN & black-market rates? The premium remains narrow and stable, within a range of approximately ₦78 to ₦93. This sustained, reduced spread indicates the CBN's success in managing speculation and channeling more legitimate demand through the official window, leading to greater market convergence.
- Will the naira strengthen further? The outlook for the second week of February is positive, with the currency on a strong foundation. The focus now shifts to factors like upcoming treasury bill auctions and their impact on system liquidity. Sustained strength will depend on maintaining the current balance of policy confidence and market liquidity.
- How do oil prices affect rates? While not directly mentioned, the stability that allows for a steady MPR and controlled inflation is often underpinned by predictable foreign
