The Dollar to Naira exchange rate remained relatively stable on Monday, August 24, as the naira continued to trade within a narrow range in the official market while maintaining a wider gap with the parallel market.
The latest confirmed official figure from the Central Bank of Nigeria showed the Naira to dollar rate at ₦1,346.49 per dollar, while the currency closed at ₦1,346.90 on Friday. The parallel market rate was around ₦1,405 per dollar.
The figures suggest that the naira has continued its recent period of relative stability, but the difference between the two markets shows that demand for dollars outside the formal market remains important.
The Gap is The Bigger Story
The official and parallel market rate were separated by about ₦58.10 per dollar based on Friday’s closing rate.
That gap is much smaller than the extreme differences seen during periods of severe foreign exchange pressure, but it still matters for Nigerians and businesses that need dollars for imports, school fees, travel, subscriptions and other international payments.
The CBN says the official NFEM rate is calculated using the volume-weighted average of transactions carried out in the formal foreign exchange market.
What is Supporting The Naira?
Recent Naira exchange rate today movements have been supported by improved dollar liquidity and stronger external reserves.
Nigeria’s external reserves reached $52.66 billion as of August 19, according to data cited in current market reports. The stronger reserve position gives the country a larger foreign currency buffer and can help reduce pressure on the naira.
The naira has also strengthened compared with earlier this month. The official NFEM rate was above ₦1,364 per dollar on August 3, compared with ₦1,346.49 on August 21.
What Should Nigerians Expect?
For now, the market appears more stable, but that does not mean the naira’s recent gains are guaranteed to continue.
Dollar demand, foreign investment flows, oil earnings and the amount of foreign currency available in the formal market will remain important factors. The parallel market can also move quickly when demand rises.
For Monday, the latest confirmed official exchange rate remains ₦1,346.49 per dollar, with the official closing rate at ₦1,346.90 and the parallel market rate around ₦1,405.
Actual rates offered by banks and Bureau de Change operators may differ depending on the transaction and market conditions.
