Naira Mixed: Gains in Official Market, Falls in Parallel Market

The Nigerian currency recorded mixed performance against the dollar in the foreign exchange market on Tuesday. The naira appreciated in the official market but fell in the unofficial markets. There were also exchange rate changes against the British pound and the euro.

Official Market Gains

The naira gained against the US dollar by N5.74 or 0.42% in the Nigerian Foreign Exchange Market (NAFEM) on Tuesday, June 2nd. It traded at N1,361.05/$1, down from Monday's rate of N1,366.95/$1. In the official market, the currency strengthened by 9 kobo against the pound sterling. It closed at N1,833.19/£1, compared to N1,833.28/£1 on Monday. Against the euro, the naira gained N2.73 to settle at N1,584.39/€1, up from N1,587.12/€1 recorded in the previous session. At the GTBank international forex counter, the dollar closed at N1,378/$1.

Black Market Depreciation

In the black market, the movement for the naira was different. The currency depreciated against the dollar. A BDC trader, Abullalahi, shared the latest exchange rates. He said: 'The dollar traded at N1,383/$1 for buying and N1,393/$1 for selling. The pound at N1,845/£1 for buying and N1,865/£1 for selling. The euro at N1,583/€1 for buying and N1,608/€1 for selling.'

Official Market Exchange Rates at a Glance

CFA: N2.43. Yuan/Renminbi: N201.26. Danish Krone: N211.94. Euro: N1,584.40. Yen: N8.51. Riyal: N362.62. South African Rand: N83.80. SDR: N1,869.24. Swiss Franc: N1,729.63. Pound Sterling: N1,833.20. US Dollar: N1,361.05. WAUA: N1,870.80. UAE Dirham: N370.57.

FX Turnover Drops

CBN data showed that total FX turnover dropped to $169.822 million on the exchange on Tuesday with 168 deals. This compares with $177.927 million recorded on Monday. After the impressive run recorded in H1 2026, analysts project that the CBN will keep supplying FX to the official market. High oil prices are expected to bolster the country's reserves.

CBN Manual and Transparency

The launch of the fourth edition of the CBN's Foreign Exchange Manual is expected to inject transparency into the system. New provisions concerning import and export, personal travelling and trade allowances, and foreign remittances are being put in place. The apex bank continues to strengthen transparency in the FX market. Earlier, the CBN said the naira is not being artificially propped up. It stressed that the stability witnessed recently is market-driven, following reforms and increased liquidity. CBN Governor Cardoso pointed out that after the past two years' reforms, the market had become much more transparent and market-driven. He explained that total market turnover jumped from an average of $361.1 million to between $550 million and $1 billion, occasionally reflecting greater liquidity.