Key points:
Official CBN (NAFEX) Rate: ₦1,418.26 / USD
Black-Market Rate: ₦1,470 / USD
Drivers: Improved price discovery and transparency from recent FX market reforms; Fresh foreign investor inflows boosting reserves to $45.623 billion; Supportive market environment for the spot market.
Top Tools: CBN Forex Portal, Aboki Fx
The Naira extended its appreciation at the official market on Wednesday, strengthening further to the ₦1,418/$1 level. Analysts attribute this positive run to the improving effectiveness of market reforms, which is enhancing liquidity and building confidence, though the parallel market rate held steady.
FAQ
- What's the gap between CBN & black-market rates? The premium stands at approximately ₦51.74. The continued appreciation in the official market is narrowing the spread, but the static parallel rate indicates that convergence is an ongoing process.
- Will the naira strengthen further? Analyst forecasts for 2026 are optimistic but varied, with projections ranging from ₦1,350 to ₦1,450 per dollar. Continued strengthening is expected but hinges on maintaining oil production, consistent policy, and avoiding external shocks that could trigger a liquidity crisis.
- How do oil prices affect rates? Oil revenue is the bedrock of Nigeria's external reserves, which have climbed to $45.6 billion. This strong reserve position is a key pillar supporting the Naira's current appreciation. However, analysts warn that weakness in global oil prices or domestic production disruptions poses the most significant risk to this positive trajectory by reducing dollar inflows.
