Official CBN (NFEM) Rate: ₦1,423 / USD
Black-Market Rate: ₦1,486 / USD
Drivers: Intense foreign exchange demand in the parallel market; Ongoing Central Bank of Nigeria (CBN) reforms and interventions providing relative stability in the official window; Global U.S. dollar sentiment influencing broader market flows.
Top Tools: CBN Forex Portal, Aboki Fx
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The Naira exhibited a mixed performance by mid-week, depreciating slightly in the official market while weakening further in the parallel segment. The gap between the two markets narrowed to ₦63, down from a recent high, yet remains wide, underscoring the persistent structural pressures and intense demand outside the regulated window.
FAQ
What’s the gap between CBN & black-market rates? The premium narrowed slightly to ₦63, down from ₦73 the previous week. While this indicates some marginal improvement, the spread remains significant, reflecting continued high demand and constraints in the parallel market.
Will the naira strengthen soon? Sustained improvement will require stronger autonomous foreign exchange inflows, reduced reliance on the parallel market, and bolstered investor confidence. While CBN reforms provide official market stability, the parallel market’s persistent weakness suggests underlying pressures that need to be addressed for broad-based strength.
How do oil prices affect rates? As the primary source of foreign exchange earnings, oil revenue is fundamental for generating the inflows needed to ease market pressures. The current stability in the official window is supported by CBN management, but the parallel market’s trajectory indicates that overall dollar supply is still struggling to meet robust demand.