Exchange Rates Gap Drops to N70 as CBN Defends Naira
The Nigerian naira exchange rate dropped to N1,500 per U.S. dollar at the official currency market on Thursday, marking the fourth successive price depreciation due to FX liquidity shortfall.
According to data from the FMDQ platform, the spot FX rate depreciated by 0.06% to N1,500.65 over increased demand versus low FX supply. FX obligations for eligible market participants eclipsed the amount available in the supply side throughout the last four trading sessions at the Nigerian foreign exchange market.
Today, the Central Bank of Nigeria (CBN) returned to the market to boost FX inflows at the official window and keep the naira rate healthy against the US dollar. Hence, the CBN conducted FX sales to authorised dealer banks, selling $11.5 million within a range of N1,495.0/$ and N1,502.5/$.
The amount failed to redirect exchange rate trends, but analysts maintain a positive outlook after the naira ramped up gains steadily last week. However, financial market analysts notice that the spot FX rates at the parallel and official markets have shrank.
The exchange rate at the informal currency market has seen sustained price recovery in the past few weeks. This was as a result of $25,000 fx sales to Bureau de Change (BDC) operators and increased regulation targeting transparency and governance.
In addition, the CBN allowed banks to meet customers personal and business travel allowances—creating direct competition with traders in the informal currency market. According to channel check by CardinalStone Limited, the parallel market rate appreciated by 1.27% to N1,570 per greenback on Thursday.
Effectively, the gap between the official and parallel market rates declined sharply to N70 – about 50% decrease in 2025. #Exchange Rates Gap Drops to N70 as CBN Defends Naira FCTA Approves N795.6m to Insure Movable, Immovable Assets
