Naira Gains at Parallel Market, Exchanges for ₦1,600/$, Narrowing Gap

The Nigerian naira continued its upward momentum in the parallel foreign exchange market, appreciating to ₦1,600 per US dollar on Thursday, a notable improvement from ₦1,610 recorded the previous day.

This gain comes amid sustained interventions by the Central Bank of Nigeria (CBN) and ongoing reforms aimed at stabilizing the foreign exchange market.

Market watchers have attributed the naira’s appreciation to an increase in dollar supply and a decline in speculative demand, following stronger regulatory oversight of Bureau de Change (BDC) operators and improved transparency in the FX ecosystem.

At the Nigerian Foreign Exchange Market (NFEM), the official rate also showed positive movement, closing at ₦1,589/$ compared to ₦1,605/$ on Wednesday. The narrowing of the gap between the official and parallel market rates—to just ₦11—marks the smallest margin seen in months, signaling a potential convergence that could ease inflationary pressures.

Financial analysts note that this trend is encouraging for Nigeria’s broader economic stability. “The ongoing foreign exchange reforms are beginning to yield results,” said a Lagos-based economist. “Sustained appreciation of the naira, if maintained, could boost investor confidence and help curb imported inflation.”

The CBN has reiterated its commitment to supporting the naira through targeted policies and increased market transparency, as it continues to work toward a unified exchange rate system.

With improved sentiment in the forex market, stakeholders are watching closely to see whether the naira can maintain its current trajectory in the coming weeks