The Naira opened at ₦1,379.05 per US dollar in Wednesday morning trading on the Nigerian Foreign Exchange Market (NFEM), moving within a narrow range and dipping to a low of ₦1,376.02 before recovering slightly.
By 7:30 AM WAT, the exchange rate was quoted at around ₦1,377.04 per dollar.
The Central Bank of Nigeria (CBN) has maintained its official closing rate near ₦1,384.29, reflecting a modest depreciation from the February average of ₦1,364.74.
Although demand for foreign exchange remains elevated, the market continues to benefit from the CBN’s “willing-buyer-willing-seller” model.
The parallel market continues to track the official window closely, with the US dollar trading between ₦1,385 and ₦1,395, representing a spread of roughly 1.2% to 1.5%.
Several key factors are influencing the exchange rate as of March 4. The CBN recently left the Monetary Policy Rate (MPR) unchanged at 26.50% following a 50-basis-point cut. Nigeria’s foreign reserves remain strong, giving the apex bank significant capacity to intervene during periods of thin liquidity.
Additionally, steady crude oil production of 1.46 million barrels per day has helped offset rising import demand in the first quarter, supporting a consistent inflow of foreign currency into the economy.
