MARKET NEWS

The naira weakened slightly against the dollar in the official foreign exchange market on Wednesday, a day after the Central Bank of Nigeria (CBN) introduced new measures to tighten oversight of remittance flows.

Data from the CBN showed the currency depreciated by N4.07, with the dollar quoted at N1,386.70 on Wednesday, representing a 0.29 percent loss compared to N1,382.63 recorded on Tuesday at the Nigerian Foreign Exchange Market (NFEM). 

In the parallel market, also known as the black market, the naira held steady at N1,415 per dollar. This narrowed the spread between the official and parallel market rates to N29 on Wednesday from N33 recorded the previous day.

The movement comes amid declining external reserves, which have continued to reduce the CBN’s buffer for currency support and external obligations. Data shows reserves fell for the seventh consecutive session, dropping by 0.89 percent to $49.57 billion as of March 24, 2026, from $50.02 billion recorded on March 11.

The latest currency movement follows a new directive from the CBN’s Trade and Exchange Department aimed at strengthening transparency and compliance in the remittance space.

In a circular signed by Musa Nakorji, director of the Trade and Exchange Department, the apex bank directed all International Money Transfer Operators (IMTOs) to open naira settlement accounts with authorised dealer banks and route all transactions through these accounts.

Under the new rule, all remittance-related transactions, including disbursements to beneficiaries and settlements, must be processed exclusively through designated accounts held within the Nigerian banking system. IMTOs are allowed to maintain multiple settlement accounts across banks, depending on their operational needs.

The CBN said the move is part of broader efforts to enhance diaspora remittances, improve transparency and traceability, and strengthen monitoring of foreign exchange flows.

To support market efficiency, authorised dealer banks are permitted to process foreign currency transfers from IMTO accounts to other banks and approved market participants, including licensed bureau de change operators.

The Central Bank also directed IMTOs to reference real-time market prices from Bloomberg BMatch when pricing transactions. This, it said, is expected to improve price discovery, reduce information gaps between market participants, and encourage greater participation in the official FX market.

The directive, which takes effect from May 1, 2026, also reinforces existing compliance requirements, including adherence to anti-money laundering and counter-terrorism financing regulations, as the CBN seeks to further formalise remittance inflows and deepen activity in the official foreign exchange market.