Nigeria’s currency, the naira, maintained relative stability against the United States dollar on Tuesday, trading at approximately ₦1,366.41/$ at the official foreign exchange market.
According to figures released by the Central Bank of Nigeria through the Nigerian Foreign Exchange Market (NFEM), the rate represents the volume-weighted average exchange rate recorded during the day’s trading activities.
The naira has largely remained within the ₦1,350 to ₦1,370 range at the official window in recent weeks, reflecting improved liquidity conditions and sustained investor confidence in the foreign exchange market.
Based on the latest official rate, $100 exchanged at approximately ₦136,641 through the NFEM platform.
Despite the relative stability at the official market, rates remained significantly higher in the parallel market, popularly known as the black market.
Currency traders quoted the dollar at around ₦1,400 for buying and between ₦1,410 and ₦1,420 for selling, depending on location, transaction volume and dealer quotations.
At those rates, $100 could fetch between ₦141,000 and ₦142,000 in the parallel market.
Market participants attributed the naira’s resilience at the official window to increased dollar supply, improved market transparency and continued foreign portfolio investments flowing into the economy.
The local currency has also benefited from ongoing foreign exchange reforms introduced by monetary authorities aimed at improving liquidity and reducing volatility.
However, analysts cautioned that exchange rates could still fluctuate in the coming weeks due to changes in foreign exchange inflows, global crude oil price movements and broader domestic economic conditions.
They noted that demand from importers, manufacturers, travelers and other businesses seeking foreign currency remains a key factor influencing market trends.
While the gap between official and parallel market rates remains, it is considerably narrower than levels recorded in previous years, reflecting a gradual convergence in pricing across the foreign exchange market.
Traders and investors are expected to continue monitoring economic indicators, oil revenues, diaspora remittances and foreign investment flows, which remain critical drivers of the naira’s performance.
