Echotitbits – Nigeria News

Tag: NFEM

  • Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    According to reporting by Vanguard, the Nigerian Naira sustained its positive momentum against the United States dollar during the early trading hours of Thursday, February 5, 2026. The local currency opened at approximately 1,368.56 per dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a steady appreciation from the 1,388 levels recorded only 24 hours prior. This recovery is largely attributed to the Central Bank of Nigeria’s (CBN) aggressive market-matching strategies and a robust increase in external reserves.

    The Electronic Foreign Exchange Matching System (EFEMS) has been cited as a primary driver for narrowing bid-ask spreads, fostering greater transparency within the official window. In the parallel market, the dollar exchanged between 1,450 and 1,465 across major hubs like Lagos and Abuja. Bureau De Change operators noted that while a premium remains, the gap between official and informal rates has contracted to one of its lowest margins in several months due to steady supply from diaspora remittances.

    The Punch and ThisDay have corroborated this downward trend in exchange volatility. Business analysts at The Punch remarked that “the Naira’s resilience this week suggests a shift from speculative behavior to demand-driven market fundamentals.” Similarly, ThisDay reported that “investor confidence is returning as the CBN stabilizes the liquidity pool,” with one analyst noting that “we are seeing the most stable foreign exchange window since the unification reforms of 2024.”

    Echotitbits take:

    The narrowing gap between the official and parallel market rates is a significant victory for the CBN’s monetary policy. If the current liquidity levels are maintained through Q1 2026, we expect a further reduction in imported inflation, which could lead to a potential softening of interest rates by mid-year. Watch for the next Monetary Policy Committee (MPC) meeting to see if these gains trigger a shift from the current 27% MPR.

    Source: BusinessDay – https://businessday.ng/news/article/naira-maintains-steady-rise-hits-n1358-28-as-reserves-grow/, February 5, 2026

    Photo credit: BusinessDay

  • Nigerian Naira Maintains Resilience as Official Exchange Rate Dips Below 1,400

    Nigerian Naira Maintains Resilience as Official Exchange Rate Dips Below 1,400

    Figures cited by Vanguard show the Naira holding below the 1,400-per-dollar threshold in the official market. On Thursday morning, the currency opened around 1,395.09/$ in the Nigerian Foreign Exchange Market (NFEM), supported by liquidity improvements and the Central Bank’s Electronic Foreign Exchange Matching System (EFEMS).

    While the parallel market remained higher, the narrowing premium suggests speculative pressure may be easing. Analysts attribute the resilience to efforts to clear FX backlogs and to a rise in external reserves, giving the central bank more room to intervene and smooth volatility.

    The Punch noted the currency’s benefit from improved price discovery, while ThisDay quoted market analysts pointing to reduced panic buying and improving investor confidence.

    Echotitbits take: Staying below the 1,400 psychological level is a notable win for the CBN narrative on stability. The next key signal is the MPC decision: holding rates could protect the FX gains, while easing could support growth but risk renewed pressure if liquidity tightens.

    Source: Facebook/TheCable – https://web.facebook.com/thecableng/posts/naira-appreciates-to-n1400-at-official-market-strongest-performance-since-may-20/1213502280966076/?_rdc=1&_rdr# 2026-01-29

    Photo Credit: Facebook/TheCable

  • Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Reporting by Vanguard indicates that the Nigerian Naira has maintained a strong positive trajectory against the United States Dollar during the mid-week trading session. In the Nigerian Foreign Exchange Market (NFEM), the local currency strengthened significantly, settling at approximately 1,400.66 per dollar. This appreciation is being fueled by increased liquidity and a surge in the country’s external reserves, which have now surpassed the $46 billion mark, providing a substantial buffer for the Central Bank of Nigeria (CBN).

    The stability in the official window is starting to reflect in the parallel market, where panic buying has largely subsided. While the “black market” rate remains slightly higher, trading between 1,480 and 1,485, the narrowing gap between the two rates suggests that the CBN’s recent monetary policy adjustments are beginning to take hold. Financial experts predict that if the current liquidity levels are sustained, the Naira could settle into a predictable range of 1,400 to 1,500 for the remainder of the fiscal year.

    Market data from MarketForces Africa corroborated the gains, noting that the “Naira touched N1,400 per Dollar in the Nigerian currency market” following a series of aggressive interventions. The Nation also reported on the currency’s resilience, with a financial analyst quoted as saying, “The absence of speculative pressure is a clear signal that the market is beginning to trust the current FX management framework.”

    Echotitbits take: The growth in external reserves is a vital sign of economic recovery, likely driven by improved crude oil production and foreign portfolio inflows. Watch for whether this stability translates into a reduction in the prices of imported consumer goods over the next quarter.

    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-gains-as-reserves-reach-eight-year-high-of-46bn/ January 28, 2026

    Photo Credit: BusinessDay

  • Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Local Currency Firms Up Against Dollar in Early 2026 Trading

    Figures cited by Vanguard show that the Nigerian Naira began the third week of January on a strong note, appreciating to approximately 1,418 per dollar in the official market. The move has been attributed to increased liquidity in the Nigerian Foreign Exchange Market (NFEM) and a drop in speculative demand. Analysts say the Central Bank’s efforts to clear outstanding obligations have restored some confidence among corporate buyers.

    In the parallel market, the currency also showed resilience, trading between 1,470 and 1,485 per dollar. Market watchers point out that the gap between official and street rates is narrowing—an objective of current monetary policy. Bureau De Change operators say typical New Year volatility has been tempered by a steady flow of diaspora remittances and improved oversight.

    The Guardian also reported that rate convergence is a positive signal for international investors. ThisDay quoted a financial analyst saying that improved transparency is contributing to market stability. The market remains optimistic that the Naira can hold its trajectory through the first quarter.

    Echotitbits take: Stability is the keyword. While 1,400+ remains a high level, reduced daily swings help businesses plan. The true stress-test will be sustaining liquidity without undue pressure on external reserves.

    Source: Reuters — https://www.reuters.com/world/africa/south-african-rand-firmer-ahead-local-inflation-data-2026-01-21/ (2026-01-23)

    Photo Credit: Reuters 2026-01-23

  • 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 Slides Further on the Street as Gap Widens With Official Window

    The naira weakened further in the parallel market while holding a different rate at the official NFEM window, widening the spread between both markets. The movement reflects ongoing demand-supply tension in the FX ecosystem.

    Analysts warn that persistent gaps can fuel speculative pricing and complicate planning for import-dependent sectors.

    2025-12-10

    Vanguard

    2025-12-10