Key points:
Official CBN (NAFEX) Rate: ₦1,366.19 / USD
Black-Market Rate: ₦1,450 / USD
Drivers: Minor technical correction after recent gains; Rising external reserves, up $632 million to $46.91 billion; Renewed foreign portfolio investment inflows; Reduction in speculative demand.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira experienced a marginal contraction at the official market on Friday, losing 13 kobo in what analysts view as a technical pause following its recent appreciation streak. Despite this slight dip, the outlook remains stable, supported by strong fundamentals like growing foreign reserves and renewed investor inflows.
FAQ
- What's the gap between CBN & black-market rates? The premium stands at approximately ₦83.81. While the official rate saw a minor dip, the parallel market rate held steady, indicating persistent but contained demand pressure in the unofficial segment.
- Will the naira strengthen further? The short-term outlook points to continued stability. The minor loss is seen as a correction within an overall positive trend. Sustained strength is anticipated, supported by the significant weekly increase in external reserves and ongoing policy confidence, which are expected to counter minor fluctuations.
- How do oil prices affect rates? The weekly jump in foreign reserves by over $630 million to $46.91 billion is a direct positive indicator, often fueled by oil earnings. This growing reserve buffer is a fundamental pillar that supports the Naira's value, provides the CBN with greater intervention capacity, and underpins the positive market confidence cited by analysts.
