CBN Releases New Exchange Rate for Access, UBA, Zenith, Others as Naira Rises

• Naira appreciates by 0.99% in the official market, closing at ₦1,344.42 per dollar
• Nigeria's external reserves exceed $50 billion, bolstering confidence in the naira's stability
• Rising global oil prices and geopolitical tensions contribute to a volatile market outlook

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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The naira continued its upward trajectory in the official foreign exchange market, appreciating by 0.99% to close at ₦1,344.42 per dollar at the Nigerian Foreign Exchange Market (NFEM).

This latest movement signals growing confidence in Nigeria’s currency within the regulated segment, as demand pressures appear to be easing. Analysts attribute the strengthening to a slowdown in foreign payment obligations relative to available US dollar liquidity.

Data released by the Central Bank of Nigeria (CBN) showed that the naira traded within an intraday band of ₦1,340 to ₦1,355, reflecting relative stability and improved market coordination.

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Parallel market holds steady

While the official market recorded gains, the parallel market painted a slightly different picture. The naira held firm at ₦1,383 per dollar, highlighting the persistent gap between the formal and informal foreign exchange markets.

This divergence underscores ongoing structural challenges in Nigeria’s FX ecosystem, including supply constraints and speculative demand in the black market.

However, market watchers note that sustained improvements in official liquidity could gradually narrow this gap if current trends continue.

Strong reserves boost confidence

Nigeria’s external reserves, currently estimated at over $50 billion, are playing a crucial role in supporting the naira’s recent rally.

Experts believe the reserve buffer provides the CBN with enough firepower to manage volatility and defend the currency when necessary. More importantly, expectations of increased foreign exchange inflows from crude oil exports are reinforcing positive sentiment.

As global oil prices rise, Nigeria stands to benefit from stronger dollar inflows, which could further stabilise the naira in the coming weeks.

Oil prices surge on global tensions

The global oil market is experiencing renewed volatility, driven by escalating geopolitical tensions in the Middle East.

Brent crude, the international benchmark, climbed to $103.89 per barrel, while US benchmark West Texas Intermediate (WTI) rose sharply by 3.2% to $96.91 per barrel.

The price surge comes amid concerns over potential supply disruptions linked to tensions involving the United States, Israel, and Iran. Traders remain on edge as uncertainty surrounding key oil transit routes continues to influence market sentiment.

Despite reports of Israeli airstrikes that reportedly resulted in the death of Iranian security chief Ali Larijani, oil markets have remained volatile rather than stabilising.

Strait of Hormuz concerns add pressure

Further complicating the global outlook are concerns over the Strait of Hormuz, a critical chokepoint for global oil shipments.

Calls by former US President Donald Trump for allied intervention to reopen the route were reportedly rejected, fuelling speculation that disruptions could persist.

This uncertainty has contributed significantly to the upward pressure on crude prices, with investors pricing in the risk of prolonged supply constraints.

Outlook: Can the naira sustain the momentum?

With rising oil prices, strong reserves, and improving FX liquidity, the outlook for the naira appears cautiously optimistic.

However, analysts warn that sustaining the current momentum will depend on consistent policy implementation, improved dollar supply, and stability in global oil markets.

For now, the naira’s recent gains offer a glimmer of hope for Africa’s largest economy as it navigates a complex global and domestic financial landscape.

Dollar hits 5-month high as CBN releases new exchange rate

Legit.ng earlier reported Nigeria’s currency, the naira, extended its decline against the United States dollar on Monday, March 9, slipping to its weakest level in five months despite improved foreign exchange inflows into the market.

Data released by the Central Bank of Nigeria (CBN) showed that the naira depreciated by N12.36 during trading at the Nigerian Foreign Exchange Market (NFEM) window.

The local currency closed at N1,405.62 per dollar, compared with N1,393.26 recorded on Friday, representing a 0.9% drop at the official market.