Key points:

Official CBN (NAFEX) Rate: ₦1,378.43 / USD
Black-Market Rate: ₦1,400 / USD
Drivers: Naira appreciated 0.05% (64 Kobo) as forex demand waned; Interbank turnover dropped sharply by 62% to $78.7 million from $208.1 million; Deal counts fell to 106 from 150, reflecting a slowdown in FX activity; CBN absent from Dollar injection.
Top Tools: FMDQ for NAFEX Data, CBN Forex Portal, Aboki FX for Parallel Market Rates

The Naira appreciated slightly at the official market, gaining 64 Kobo to close at ₦1,378.43/$ as demand for foreign exchange eased. Interbank turnover dropped sharply by 62% to $78.7 million, with deal counts falling from 150 to 106. The black market held steady at ₦1,400/$. The slowdown in transaction volume suggests reduced demand pressure on the currency.

FAQ

What’s the gap between CBN & black-market rates? The premium stands at about ₦21.57. The official market strengthened slightly while the parallel market held steady, resulting in a narrower spread.

Will the naira strengthen further? The sharp decrease in interbank turnover and deal counts suggests easing demand pressure, which could support further stability. However, the CBN’s absence from Dollar injection and the decline in FX activity indicate a market that is finding its own equilibrium.

How do oil prices affect rates? The article notes that the cryptocurrency market soared after a moderation in oil prices and bond yields following the collapse of the Iran war ceasefire. Lower oil prices could reduce dollar inflows, potentially affecting Nigeria’s external reserves and the naira’s stability.