The Naira opened at 1,379.05 per dollar in the official window at Wednesday morning trading sessions in the Nigerian Foreign Exchange Market (NFEM), as rate fluctuated within a narrow range, reaching a low of 1,376.02 before rebounding slightly.
By 7:30 AM WAT, the exchange rate was quoted at approximately 1,377.04 per dollar.
The Central Bank of Nigeria (CBN) has maintained its closing rate near 1,384.29, a slight depreciation from the February average of 1,364.74.
While demand for foreign exchange remains high, the market continues to benefit from the CBNโs โwilling-buyer-willing-sellerโ model.
Market continues to follow the official window closely at the parallel market, with the US dollar being exchanged at rates between 1,385 and 1,395 per dollar, with difference hovering around 1.2% to 1.5%.
Several fundamental factors are shaping the exchange rate as of March 4 โ the CBN has maintained the Monetary Policy Rate (MPR) at 26.50% following its recent 50-basis-point cut.
Nigeriaโs foreign reserves remain robust, providing the apex bank with substantial firepower to intervene during periods of thin liquidity.
Also, steady crude oil production at 1.46 million barrels per day has offset the increased demand for imports as the first quarter progresses, ensuring a reliable stream of foreign currency inflows.
Discussion about this post