Naira Gains Strength, Trades at ₦1,359/$ in Official Market

Naira Gains Strength, Trades at ₦1,359/$ in Official Market

The Naira strengthened to ₦1,359 per dollar in the official window of the Nigerian Foreign Exchange Market, signaling improved foreign exchange liquidity and a narrowing gap between the formal and parallel currency markets.

Data from the official trading platform showed the local currency closing at ₦1,359/$, reflecting renewed stability in the official exchange rate amid sustained policy interventions and improved dollar supply.

The development comes as monetary authorities continue reforms aimed at deepening transparency and boosting investor confidence in Nigeria’s forex market.

Parallel Market Gap Narrows

Checks across currency traders indicate that the parallel market rate hovered close to ₦1,360/$, leaving a marginal spread of about ₦1 between the two segments. The near convergence suggests improved foreign exchange liquidity and reduced speculative pressure.

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Market analysts note that such a narrow margin between official and street rates typically reflects stronger market confidence and better dollar availability within the banking system.

Policy Support from the Central Bank

Recent measures by the Central Bank of Nigeria have focused on clearing FX backlogs, enhancing price discovery, and attracting foreign portfolio inflows. These efforts are gradually stabilizing the naira exchange rate after months of volatility.

Financial experts say continued FX inflows from oil revenues, diaspora remittances, and foreign investors will be critical in sustaining the naira’s appreciation trend.

What This Means for Businesses and Consumers

A stronger and more stable official forex rate could:

• Reduce import costs over time
• Ease inflationary pressures linked to exchange rate volatility
• Improve planning certainty for businesses
• Strengthen investor confidence in Nigeria’s financial markets

However, analysts caution that sustained appreciation will depend on consistent FX supply, fiscal discipline, and broader macroeconomic stability.

For now, the movement to ₦1,359/$ marks another step toward exchange rate alignment and market normalization.

 

Naira Gains Strength, Trades at ₦1,359/$ in Official Market