Naira Records Gains Against Major Currencies in Foreign Exchange Markets
In a recent development in Nigeria's financial landscape, the naira has shown resilience by posting marginal gains against key global currencies, even as it held steady against the US dollar. According to data released by the Central Bank of Nigeria (CBN), the naira traded at N1,343.74 per US dollar on Wednesday, April 15, maintaining the same rate as the previous day. This stability in the official market comes amid broader fluctuations in the foreign exchange environment.
Appreciation Against Pound and Euro
The naira appreciated by N1.65 against the British pound sterling, closing at N1,822.92 per pound, compared to N1,824.57 recorded earlier. Similarly, it strengthened against the euro by 43 kobo, settling at N1,585.08 per euro from N1,585.51. These gains highlight a slight but notable improvement in the currency's position against these major European currencies, providing some relief in the volatile FX market.
Decline in Interbank FX Turnover and Reserves
Data from the CBN indicates that interbank foreign exchange turnover declined to N114.347 million, down from N141.315 million in the previous session. This reduction suggests decreased trading activity among market participants, potentially reflecting cautious sentiment or reduced liquidity. Additionally, Nigeria's external reserves have fallen below the $49 billion mark, a drop from earlier levels above $50 billion, which was the highest since 2009. The decline is attributed to sustained FX interventions by the central bank aimed at supporting the naira.
Black Market Dynamics
In the unofficial or parallel market, the US dollar experienced a decline, trading below N1,400. A Bureau de Change (BDC) trader, Abdullahi, reported adjusting selling rates to N1,398 per dollar from N1,388, with the pound sterling moving to N1,865 per pound from N1,850, and the euro trading at N1,615 per euro from N1,600. This shift indicates reduced patronage in the black market, possibly due to increased regulatory measures or changing demand patterns.
Expert Projections and Market Outlook
Market analysts, including Yemi Kale, Chief Economist at the Africa Export-Import Bank (Afreximbank), have projected that the naira could trade between N1,350 and N1,450 per US dollar in 2026. In a baseline scenario, Kale expects the currency to remain under pressure but avoid a sharp collapse, with forecasts of around N1,313 per dollar by June and approximately N1,340 by December 2026. These predictions consider factors such as oil prices, foreign-exchange inflows, inflation trends, and policy consistency.
Latest CBN Exchange Rates
The Central Bank of Nigeria has released updated exchange rates for various currencies, including:
- CFA: N2.42
- Yuan/Renminbi: N196.99
- Danish Krona: N212.09
- Euro: N1,585.08
- Yen: N8.45
- Riyal: N358.16
- South African Rand: N82.07
- SDR: N1,847.38
- Swiss Franc: N1,719.44
- Pounds Sterling: N1,822.92
- US Dollar: N1,343.74
- WAUA: N1,846.78
- UAE Dirham: N365.82
Market watchers anticipate that the naira will remain relatively stable in the near term, provided that foreign exchange supply conditions and policy interventions by the CBN are maintained. This stability is crucial for economic planning and investor confidence in Nigeria's evolving financial markets.
