…Modest Appreciation At Daily Trading
Amid daily modest gains and high expectations from the new policy measures by the Central Bank of Nigeria, (CBN), the local currency, Naira recorded a weekly loss of N21.68 against the dollar in the official foreign exchange (FX) market.
This is even as Nigeria’s external reserves continued its downward trend.
At the parallel market, it was the same trend, for the second straight week, widening the gap between the official and parallel market rates to N35.
According to data from the Central Bank of Nigeria (CBN), naira closed at N1,380.58 per dollar on Friday, the last trading day of the week, representing a 1.57 percent depreciation compared to N1,358.90 recorded the previous Friday at the Nigerian Foreign Exchange Market (NFEM).
However, on a daily basis, the local currency appreciated slightly by N3.30, or 0.24 percent, from N1,383.88 per dollar on Thursday.
Infact, over the five trading days of the week, it gained N7.80, a 0.56 percent appreciation from N1,388.38 quoted at the start of the week on Monday.
In the parallel market, the naira weakened further, closing at N1,415 per dollar on Friday, a depreciation of N15 compared to N1,400 recorded a week earlier.
The currency also lost N3 on a daily basis from N1,412 quoted on Thursday, widening the gap between the official and parallel market rates to N35 from N29.
The pressure on the currency comes amid a sustained decline in Nigeria’s external reserves, which provide the CBN with the buffer to support the naira.
Specifically, the reserves fell for the ninth consecutive day to $49.48 billion as of March 26, 2026, marking a decline of $540 million, or 1.08 percent, from $50.02 billion recorded on March 11.
However, analysts are optimistic that CBN’s current palliative measures would soon begin to impact positively, by improving liquidity and strengthening the FX market.
Recently, CBN had removed the cash pooling requirement for International Oil Companies (IOCs), allowing them full access to their repatriated export proceeds.
Under the previous framework, authorised dealer banks were required to pool 50 percent of the IOCs’ export earnings, while the remaining 50 percent could only be repatriated after 90 days. The new directive allows IOCs to repatriate 100 percent of their proceeds immediately through authorised dealers’ banks, subject to proper documentation and monthly reporting.
Similarly, CBN had issued new guidelines for International Money Transfer Operators (IMTOs), mandating that all remittance transactions be routed through designated naira settlement accounts held with authorised dealer banks.
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The directive, titled “Measures to Further Enhance Compliance in the Remittance Space”, requires IMTOs to process all beneficiary payments and foreign exchange conversions strictly within the banking system. Operators are allowed to maintain multiple accounts across banks; however, all inflows must be credited exclusively into these accounts.
The measure is aimed at improving transparency, traceability, and monitoring of diaspora remittances, a critical source of foreign exchange for the country. To strengthen pricing discipline, the CBN also directed IMTOs to reference real-time rates from Bloomberg BMatch when pricing transactions.
Also, authorised dealer banks have been permitted to transfer funds from IMTO settlement accounts to other banks and licensed Bureau De Change operators, a move expected to enhance liquidity distribution across the FX market.
The new remittance rules, which take effect from May 1, 2026, also reinforce compliance requirements, mandating strict adherence to anti-money laundering and counter-terrorism financing regulations