The naira strengthened further on Thursday, trading at about ₦1,344.45 to the US dollar in the latest available foreign exchange market indication.
The latest movement extends the naira’s recent gains as improved dollar supply and stronger liquidity continue to support the local currency in the official foreign exchange market.
Data from the Central Bank of Nigeria showed that the Nigerian Foreign Exchange Market, NFEM, rate stood at ₦1,343.32/$ on August 18, after the naira closed at around ₦1,350/$ on August 17.
A live currency-rate platform also quoted the dollar at approximately ₦1,344.45 as of 5:18 a.m. UTC on Thursday.
The latest figures point to continued stability in the official market, where the naira has recorded a series of gains this week.
Despite the improvement, the parallel market continued to quote the dollar at a higher rate.
According to Aboki Forex, the dollar was selling for around ₦1,404 on Thursday, leaving a difference of roughly ₦60 per dollar compared with the latest ₦1,344.45 official indication.
The gap shows that a significant difference remains between the official and parallel foreign exchange markets.
Market reports have attributed the naira’s recent performance to increased dollar supply and improved foreign exchange liquidity.
AbokiFX reported on August 19 that the naira had reached a five-month high of ₦1,343.32/$.
The CBN calculates the NFEM rate using a volume-weighted average of eligible transactions in the formal foreign exchange market.
However, the actual rate available to individuals and businesses can vary depending on the bank, Bureau de Change operator, location and size of the transaction.
The naira-dollar exchange rate may also fluctuate during the day as demand and supply conditions in the foreign exchange market change.
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