What moves the Naira-dollar exchange rate
Economy · 2026-10-15
In June 2023 the Central Bank of Nigeria unified its official foreign-exchange windows, letting the Naira trade closer to market levels. Since then the rate has responded more directly to supply and demand.
Dollar supply
Oil export earnings, diaspora remittances and foreign portfolio inflows bring dollars into the economy. When these rise, pressure on the Naira usually eases.
Dollar demand
Imports, school fees abroad, travel and companies repaying foreign loans all need dollars. Heavy demand weakens the Naira.
Interest rates and inflation
CBN Monetary Policy Committee decisions on the policy rate affect whether investors hold Naira assets. High inflation erodes the currency's value over time.
Reading markets
Economy markets on Avalon use official published figures for settlement. Always check the stated source and date in the market rules before you trade.