The naira appreciated to N1,380 per dollar in the parallel market yesterday, from N1,390 per dollar on Monday. At the official Nigerian Foreign Exchange Market, NFEM, the currency moved the other way, depreciating to N1,329.5 per dollar.
(Rates move throughout the day, so always check the live comparison on checkfxrates.com to compare Naira to other Major Currencies before you send.)
Parallel market
The picture was different on the parallel market, where the naira strengthened to about N1,370 per dollar. That is a gain of N10 from the previously reported rate of N1,380/$.
The contrasting movements narrowed the gap between the official and parallel-market rates, a key indicator watched by businesses and investors assessing Nigeria’s foreign exchange market.
FX analysts believe the CBN’s recent interventions and broader market reforms are helping to contain sharp currency swings, although demand for dollars remains a major factor.
Analysts at Herwood Securities Limited said the forex market could remain relatively stable in the near term, with movements largely determined by available liquidity and demand conditions. The firm said the naira could continue to record modest fluctuations as market participants react to prevailing supply and demand dynamics.
(Rates move throughout the day, so always check the live comparison on checkfxrates.com to compare Naira to other Major Currencies before you send.)
Official market and CBN data
Data from the Central Bank of Nigeria, CBN, showed that the indicative exchange rate for the naira rose to N1,329.5 per dollar from N1,329 per dollar on Monday. That represented a 50 kobo depreciation for the local currency at the NFEM. The naira had closed Monday at N1,329 per dollar in the official market.
Margin narrows
The margin between the parallel market and the official market narrowed to N50.5 per dollar. It stood at N61 per dollar on Monday. The smaller gap means the two rates moved closer, reducing the spread between the parallel market and the CBN’s indicative NFEM rate.
Turnover rises
The value of interbank turnover in NFEM grew by 177.6 percent to $262.12 million from $94.4 million on Monday. The sharp increase in turnover came as the official rate edged up by 50 kobo.
For Nigerian businesses and consumers, the N50.5 margin is the key number to watch. A narrower spread reduces the difference between the parallel market rate and the official NFEM rate, though the parallel market remains the reference for many dollar transactions outside the formal banking window.
Reserves at highest level since 2008
Providing an additional buffer, Nigeria’s gross external reserves climbed to $54.607 billion, supported partly by stronger hydrocarbon revenues. The level is the highest recorded since 2008 and could strengthen the CBN’s capacity to support liquidity in the FX market when necessary, according to a report by MarketForces Africa.
For businesses and households, the immediate focus remains on whether increased dollar supply can consistently match demand.
With official turnover rising sharply and reserves strengthening, traders will be watching upcoming sessions to see whether the naira can recover from its latest decline or face renewed pressure.
The naira had strengthened earlier in the official market after the CBN injected fresh dollar liquidity into the system, appreciating to N1,328.2154/$ at the NFEM from N1,329.2129/$ in the previous session.
For importers and businesses sourcing dollars for obligations, the near-term outlook hinges on whether the CBN can keep supply steady enough to prevent the kind of demand-driven slides that pushed the rate higher this week.
