The Nigerian naira on Thursday maintained relative stability against the United States dollar on Thursday, trading at about N1,358/$ at the official foreign exchange market.
This performance is backed by improved liquidity and steady foreign investor activity, which continue to support the local currency.
Data from the Nigerian Foreign Exchange Market (NAFEM) showed a marginal appreciation from the N1,359 rate recorded a week earlier, highlighting the currency’s resilience amid global economic shifts.
On the flipside, the naira traded around N1,403 per dollar at the parallel market, leaving a manageable N45 gap between the official and unofficial windows compared to previous periods of extreme volatility.
CBN launches new overnight financing rate to boost transparency
The Central Bank of Nigeria (CBN), has launched the Nigerian Overnight Financing Rate (NOFR) aimed at boosting transparency across the nation’s financial markets.
The newly introduced transaction-based reference rate launched officially in Abuja is structured to serve as an accurate reflection of the actual cost of overnight borrowing within the domestic money market.
By functioning as an objective measure of overnight borrowing costs, the new rate will significantly improve price discovery and enhance market integrity across the financial sector.
The initiative is also engineered to support advanced risk management frameworks for financial institutions, giving them a more reliable tool to navigate liquidity.
The apex bank expects the reference rate to serve as a significant reform that will boost foreign and domestic investor confidence while deepening overall financial market operations.
Developed in partnership with the Financial Markets Dealers Association and backed by the European Bank for Reconstruction and Development, the benchmark will modernize Nigeria’s money market infrastructure to align it with international best practices.
Beyond daily trading activities, the implementation of the new financing rate will directly advance the central bank’s overarching mission to strengthen financial system stability and foster long-term, sustainable economic growth.