Naira Strengthens to N1,359/$ at Official Market, Slips to N1,453/$ in Parallel Market
The naira recorded a modest appreciation at the official foreign exchange market in mid-week trading, extending its gradual recovery amid improving sentiment around Nigeria’s macroeconomic outlook.
Data published on the Central Bank of Nigeria’s (CBN) official website showed that the local currency strengthened to N1,359 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), compared with N1,365/$ recorded in the previous trading session.
Market analysts attributed the improvement in official pricing to relative stability in dollar supply, sustained external reserve levels, and the impact of recent monetary tightening measures by the apex bank.
The gains were also supported by renewed investor confidence following recent credit rating actions that acknowledged Nigeria’s ongoing fiscal and monetary reforms.
However, the naira moved in the opposite direction at the parallel market, where it weakened to N1,453/$, down from N1,445/$ in the previous day’s trading.
The widening gap between the official and parallel market rates reflects persistent demand pressures for foreign currency outside the formal market, particularly for imports, travel, and school fees.
Foreign exchange traders said while the official market continues to show signs of increased price discovery and reduced volatility, the parallel market remains sensitive to short-term demand fluctuations and liquidity constraints.
The CBN has repeatedly stated its commitment to maintaining transparency in the foreign exchange market, clearing legitimate FX backlogs, and supporting a market-driven exchange rate system.
Recent reforms, including tighter liquidity management and improved FX inflows from both portfolio and export sources, have contributed to the gradual stabilisation of the official market.
Despite the mixed performance across markets, analysts remain cautiously optimistic that sustained policy consistency, improved oil production, and rising non-oil exports could further support the naira in the medium term, while helping to narrow the gap between official and parallel market rates.
