- Naira firms at official market, holds steady in parallel trade
Nigeria’s naira strengthened marginally against the U.S. dollar in the official foreign exchange market on Tuesday, while remaining broadly stable in the parallel market, reflecting continued relative calm in the country’s currency market.
The naira traded at around ₦1,380/$ in the Nigerian Foreign Exchange Market (NFEM), according to Central Bank of Nigeria data, compared with levels near ₦1,382/$ in recent sessions.
In the parallel market, Bureau de Change operators quoted the dollar at about ₦1,410 for buying and ₦1,430 for selling, although rates varied across trading locations.
The gap between the official and parallel market rates has narrowed significantly over the past year following a series of foreign exchange reforms introduced by the Central Bank of Nigeria to improve liquidity, enhance price discovery and attract foreign investment.
Market participants said the naira has remained relatively stable in recent weeks despite intermittent pressure from corporate demand for dollars, supported by improved foreign exchange inflows and central bank interventions. Reuters reported last week that the currency was trading around ₦1,383/$ in the official market and ₦1,425/$ on the street market as demand from importers increased.
Analysts say investors are closely watching Nigeria’s foreign reserves, oil export receipts and monetary policy for signals on the currency’s direction in the second half of the year. Official reserves have remained above
