Echotitbits – Nigeria News

Tag: Naira

  • Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Reporting by BusinessDay indicates that the Central Bank of Nigeria (CBN) has reopened its foreign exchange window for Bureau De Change (BDC) operators. This strategic move is designed to narrow the widening gap between the official and parallel market rates, providing much-needed liquidity to the retail segment of the currency market.

    In an update published by the same outlet, the apex bank’s decision follows a period of heightened volatility that saw the Naira under significant pressure. By channeling funds directly through licensed BDCs, the CBN aims to decentralize access to foreign currency for small-scale users and travelers, thereby curbing speculative activities that have historically fueled inflation.

    Market analysts suggest that this intervention, coupled with the ongoing “clean-up” of the BDC sector, reflects a more aggressive stance by the regulator to maintain macroeconomic stability. The reopening of the “dollar tap” is expected to provide immediate relief to businesses that rely on the informal market for their foreign exchange needs.

    The Punch and The Nation have confirmed this development, noting the positive reception from financial stakeholders. The Punch reported that “operators expect the move to significantly reduce the premium between markets,” while The Nation quoted a source stating, “this is a vital step toward achieving a realistic exchange rate for the 2026 fiscal year.”

    Echotitbits take: This intervention is a reactive measure to the recent currency slide. While it offers short-term liquidity, the long-term stability of the Naira depends on Nigeria’s ability to boost non-oil exports and attract foreign direct investment. Watch for the CBN’s next Monetary Policy Committee (MPC) meeting to see if interest rates will be adjusted to complement this liquidity injection.

    Source: BusinessDay – https://businessday.ng/news/article/cbn-approves-150000-weekly-fx-sales-to-bdcs/, February 13, 2026

    Photo credit: BusinessDay

  • Naira Hits Two-Year High as CBN Resumes Dollar Sales to BDC Operators

    Naira Hits Two-Year High as CBN Resumes Dollar Sales to BDC Operators

    Figures cited by Vanguard show that the Nigerian Naira has reached its strongest position against the US Dollar in over two years, trading near the 1,351 mark in the official market on Thursday. This significant appreciation is largely attributed to the Central Bank of Nigeria’s (CBN) recent policy shift, which reopened the “dollar tap” for licensed Bureau De Change (BDC) operators. By allowing BDCs to purchase up to $150,000 weekly, the apex bank has effectively saturated the retail segment with much-needed liquidity.

    The ripple effect of this intervention has been felt across major commercial hubs like Lagos and Abuja, where the parallel market rate has stabilized between 1,430 and 1,440. Market analysts suggest that the direct involvement of BDCs in the official window has curbed the speculative demand that previously drove the “black market” to record lows. The increased transparency in price discovery is now allowing for more predictable business transactions for small-scale importers and travelers.

    Despite the positive momentum, a spread of approximately 90 Naira still exists between the official Nigerian Foreign Exchange Market (NFEM) and the street rate. However, the CBN’s strategy of consistent weekly auctions appears to be working to narrow this gap. Financial experts are optimistic that if this supply remains steady, the Naira could sustain its gains throughout the first quarter of 2026.

    In support of these findings, The Nation observed that “the influx of forex has calmed the nerves of manufacturers who were previously struggling to source dollars.” Furthermore, BusinessDay confirmed the trend, quoting a currency dealer who said, “The frantic demand we saw in December has evaporated because people can now get FX through official channels.”

    Echotitbits take: The CBN’s return to BDC interventions is a pragmatic move to control the retail forex market. While the appreciation is a win for importers, the sustainability of this trend depends on Nigeria’s oil production levels and foreign reserve health. Keep an eye on the next MPC meeting for hints on interest rate adjustments to complement this FX stability.

    Source: Daily Post – https://dailypost.ng/2026/02/11/naira-continues-to-appreciate-against-us-dollar-as-cbn-directs-fx-sales-to-bdcs/, February 12, 2026

    Photo credit: Daily Post

  • Nigeria’s External Reserves Hit $46.91bn as Naira Closes at N1,366.19

    Nigeria’s External Reserves Hit $46.91bn as Naira Closes at N1,366.19

    According to Daily Post reporting, the Nigerian Naira concluded the week at N1,366.19 against the US Dollar at the official foreign exchange market, marking a slight daily depreciation from its previous standing. Despite this minor dip, the nation’s economic outlook remains bolstered by a significant surge in external reserves, which have now climbed to $46.91 billion as of early February 2026.

    The local currency’s performance showed resilience on a week-on-week basis, gaining approximately N20.36 at the official window. Meanwhile, the parallel market—often referred to as the black market—saw the Naira ending the week with a notable N10 gain, settling at a rate of N1,450 per dollar. This convergence of rates is seen as a positive sign of stabilizing liquidity within the financial system.

    Market analysts note that the steady accumulation of foreign reserves provides the Central Bank of Nigeria (CBN) with a stronger buffer to manage exchange rate volatility. This development was further validated by The Punch, which noted that “the robust reserve level is a testament to improved crude oil receipts and tighter fiscal controls,” while Vanguard added that “the stability in the FX market is increasingly attracting the interest of offshore portfolio investors.”

    Echotitbits take: The climb to $46.91bn in reserves is a major milestone for the Tinubu administration’s economic team. It suggests that the aggressive monetary tightening and FX reforms are finally yielding a “liquidity cushion.” Watch for whether the CBN will use this surplus to intervene more frequently in the retail end of the market to further close the gap between official and parallel rates.

    Source: Daily Post – https://dailypost.ng/2026/02/07/naira-closes-week-at-n1366-19-per-dollar-as-nigerias-external-reserves-hit-46-91bn/, February 7, 2026

    Photo credit: Daily Post

  • Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora Remittances Hit Record High as Nigeria Simplifies FX Inflows

    Diaspora remittances into Nigeria reportedly hit a record monthly high in January 2026, driven by FX market reforms that narrowed the gap between official and parallel market rates and encouraged formal channels.

    The CBN’s incentive approach and the licensing of new International Money Transfer Operators (IMTOs) have helped reduce transfer costs, with analysts describing remittances as a key pillar for reserves stability.

    Policy discussions are also shifting toward remittance-backed bonds that would allow diaspora funds to support infrastructure projects, converting consumption inflows into long-term development capital.

    Echotitbits take: For years, billions bypassed the official system. Better FX transparency is restoring diaspora confidence in formal channels. The next step—Diaspora Bonds—could help close Nigeria’s infrastructure funding gap, but only if managed transparently and credibly.
    Source: This Day – https://www.thisdaylive.com/2026/01/17/how-cbn-reforms-are-boosting-nigerias-fx-inflows-balance-of-payments/ 2026-01-27

    Photo Credit: This Day

  • Naira Gains in Official Market as CBN Interventions Boost Liquidity

    Naira Gains in Official Market as CBN Interventions Boost Liquidity

    The Nigerian naira opened the final week of January 2026 with modest gains against the US dollar in the official market, following reported Central Bank of Nigeria (CBN) interventions and improved foreign exchange liquidity.

    Market watchers say the spread between official and parallel market rates continues to narrow, a trend linked to recent efforts to attract foreign portfolio inflows and stabilize the currency. For import-reliant businesses, even incremental stability can ease cost planning and reduce pass-through inflation on raw materials.

    The CBN is expected to remain cautious, maintaining a tight monetary stance as inflation risks persist. Separate market reporting also characterized the gains as liquidity-driven, reinforcing the view that policy signaling and FX supply conditions will be decisive through Q1.

    Echotitbits take: Currency stability is the Holy Grail for the current economic team. If the Naira stays within this range, we might see a more significant drop in the cost of imported raw materials by the second quarter.
    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-records-0-8-year-to-date-gain-as-reserves-grow-further/ 2026-01-26

    Photo Credit: BusinessDay

  • Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    Parallel Market Pressure Deepens as Naira Slides to ₦1,490 per Dollar

    According to Vanguard, the naira came under fresh pressure in the parallel market on Thursday, weakening to about ₦1,490/$—down from roughly ₦1,470/$ earlier in the week.

    Figures from the Nigerian Foreign Exchange Market (NFEM) also showed a mild softening in the official close, moving from about ₦1,416/$ to ₦1,421/$, widening the spread between official and street rates.

    Market watchers linked the renewed volatility to seasonal FX demand and speculative positioning, even as the central bank has continued to signal optimism around reserve buildup and longer-term convergence.

    **Echotitbits take:** The persistent gap between official and parallel rates remains a key credibility test for FX reforms. If liquidity at the retail end stays tight, expect more pressure on prices and confidence—watch closely for the CBN’s next market-facing intervention.
    Source: Guardian — https://guardian.ng/business-services/naira-eyes-n1300-at-parallel-market-as-speculators-offload-fx/ 2026-01-08

    Photo Credit: Guardian

  • Naira Opens 2026 With Strong Gains as Reform Confidence Grows

    Naira Opens 2026 With Strong Gains as Reform Confidence Grows

    Figures cited by Daily Post show that the Nigerian Naira began the 2026 trading year on a positive note, appreciating to N1,430.84 against the U.S. dollar in the official market. This represents a 0.34% gain compared to the closing rate of N1,435.75 recorded on December 31, 2025.

    The currency’s performance is being linked to renewed investor confidence following the Central Bank of Nigeria’s (CBN) aggressive monetary tightening and structural reforms in the foreign exchange market. Market analysts suggest that the stability seen in the opening days of the year could signal a less volatile period for the local currency.

    In its first trading assessment of the year, BusinessDay noted that the ‘Naira extends rally in first trading day of 2026,’ as supply liquidity showed signs of improvement. Meanwhile, The Nation reported that the apex bank is betting on ‘structural changes in oil, tax, and foreign exchange markets to sustain growth and disinflation’ throughout the fiscal year.

    Echotitbits take: This early gain is a psychological victory for the CBN’s ‘orthodox’ monetary policy. If the bank can maintain this trajectory without depleting reserves too quickly, we may see a gradual convergence between the official and parallel market rates by the second quarter.

    Source: Nigeria Housing Market — https://www.nigeriahousingmarket.com/news/naira-outlook-2026-analysts-project-stronger-fx-stability-as-fundamentals-improve
    Nigeria Housing Market January 3, 2026

    Photo Credit: Nigeria Housing Market

  • Tinubu says 2026 begins a “more robust phase” for Nigeria’s economic growth

    Tinubu says 2026 begins a “more robust phase” for Nigeria’s economic growth

    2026-01-01 07:35:00
    According to Vanguard, President Bola Tinubu said 2026 would mark the beginning of a more robust phase of economic growth as reforms mature.

    The messaging positions recent macro decisions—subsidy removal, FX changes, and fiscal tightening—as a bridge from instability toward higher growth and investor confidence.

    Household pressure points—prices, jobs and purchasing power—remain the practical scorecard for whether the optimism resonates.

    Punch also framed the outlook as Tinubu pledging a “strong economic rebound.”

    The Guardian Nigeria similarly carried the “more robust phase of economic growth” line in its reporting of the New Year message.

    Echotitbits take:

    The market will judge by outcomes: inflation direction, FX stability, real wages, and whether power/transport constraints ease. Watch Q1 indicators and whether policy consistency holds under social pressure.

    Source: Guardian — January 1, 2026 (https://guardian.ng/politics/full-text-2026-marks-start-of-more-robust-economic-growth-says-tinubu-in-new-year-message/)

    Guardian 2026-01-01

    Photo Credit: Guardian

  • CBN projects FX reserves could hit $51bn by 2026

    CBN projects FX reserves could hit $51bn by 2026

    2025-12-31 08:21:00

    Figures cited by PUNCH show the Central Bank of Nigeria expects external reserves to climb to about $51.04bn in 2026, up from a projected $45bn in 2025, based on assumptions about FX-market conditions and inflows.

    The forecast is tied to the CBN’s 2026 macro outlook, leaning on expectations of reduced pressure in the FX market, improved export earnings, and higher remittance inflows.

    CBN also points to refining capacity and broader reforms as potential tailwinds that reduce import pressure and support reserve accumulation over time.

    Validation: Channels Television said “The external reserves are projected at $51.04bn in 2026, compared with $45.01bn in 2025.” and The Guardian reported “external reserves… to rise to US$51.04 billion.”

    Echotitbits take: This projection is optimistic—and markets will judge credibility by liquidity and transparency. Watch the drivers: oil receipts, diaspora remittances, and whether FX spreads truly narrow across official and parallel windows.

    Source: The Punch — 31 December 2025 (https://punchng.com/fx-reserves-to-hit-51bn-by-2026-cbn/)

    The Punch 31 December 2025

    Photo Credit: The Punch

  • FX reserves climb by $4.39bn in 12 months, CBN data shows

    FX reserves climb by $4.39bn in 12 months, CBN data shows

    2025-12-29 09:00:00
    Figures published by Punch indicate Nigeria’s external reserves rose by $4.39bn between December 23, 2024 and December 23, 2025, reaching about $45.24bn over the period, based on data sourced from the Central Bank of Nigeria.

    The rise adds to a late-2025 picture of stronger buffers, with other market trackers also placing Nigeria’s gross reserves above $45bn in December and describing it as a multi-year high.

    Beyond the headline number, the key question for businesses and households is whether the reserve build-up translates to steadier FX supply and narrower spreads across official and parallel channels.

    MoneyCentral reports that “Gross dollar reserves stood at $45.04 billion as at December 4, 2025,” citing CBN data, while TELL notes reserves “hit $45bn” in early December 2025.

    Echotitbits take: Reserves are a confidence barometer—but they can rise and still feel “tight” if FX demand stays hot. Watch whether the trend holds into Q1 2026 and whether gaps between rates meaningfully narrow.

    Source: The Punch — December 29, 2025 (https://punchng.com/fx-reserves-add-4-39bn-in-one-year/)
    The Punch 2025-12-29

    Photo Credit: The Punch