The Nigerian naira remained stable at the start of the new month, maintaining its recent gains in both the official and parallel foreign exchange markets amid improving liquidity and continued interventions by the Central Bank of Nigeria (CBN).
Data from the Nigerian Foreign Exchange Market (NFEM) showed the naira trading at ₦1,380.17 per U.S. dollar at the official window. The rate reflects the CBN’s volume-weighted average of transactions executed through the official market and signals continued stability following months of foreign exchange reforms.
Meanwhile, the parallel market remained relatively calm, with the dollar exchanging between ₦1,390 and ₦1,400, depending on location and dealer quotations. The narrow spread of roughly ₦10–₦20 between the official and street markets is significantly smaller than the wide gaps seen in previous years, suggesting stronger FX supply and improved confidence in the formal market.
Market analysts attribute the currency’s resilience to the CBN’s sustained efforts to improve liquidity, encourage transparency in the foreign exchange market and attract more dollar inflows through official channels. However, they caution that demand from importers, manufacturers and international travelers continues to support activity in the parallel market.
The exchange rate remains one of Nigeria’s most closely watched economic indicators because of its impact on inflation, import costs, fuel prices and overall business confidence. While traders expect the naira to remain relatively stable in the short term, they note that global oil prices, foreign reserves and capital inflows will continue to influence the currency’s direction in the months ahead.
