Naira Mixed Against US Dollar: Gains in Official Market, Falls in Black Market

The Nigerian naira recorded mixed movements against the US dollar on Thursday, July 3, gaining in the official Nigerian Foreign Exchange Market (NAFEM) but depreciating in the parallel black market. Market analysts expect the naira to stay range-bound as forex intervention slows and interbank market turnover drops.

Black Market Sees Depreciation

In the black market, Bureau de Change (BDC) operators confirmed that the naira weakened against the dollar. Abdullahi, a BDC trader, told Legit.ng: "The dollar buying rate has increased to N1,396 from N1,394 on July 1, while the selling rate rose to N1,406 from N1,404."

The euro is now selling at N1,587, up from N1,583, while the buying rate increased to N1,567 from N1,563. The British pound sterling is selling at N1,870, compared to N1,865 on July 1, with the buying rate rising to N1,850 from N1,845.

Official Market Records Gains

In the official market, the naira gained against the US dollar in the Nigerian Foreign Exchange Market (NAFEM) on Thursday, July 2, gaining N2.26, or 0.16%, to close at N1,370.15/$1, compared with N1,372.41/$1 recorded on Wednesday.

However, the Nigerian currency weakened against the British pound sterling, losing N10.44 to settle at N1,832.17/£1, down from N1,821.73/£1 a day earlier. It also depreciated against the euro by N2.91, closing at N1,568.28/€1, compared with N1,565.37/€1 in the previous session.

Analysts Expect Stable Range Ahead

Market analysts said expectations remain positive for the naira as pressure from half-year profit-taking eases while the Central Bank of Nigeria continues to support market stability through its policy measures. Data released by the CBN showed that interbank foreign exchange turnover declined to $85.52 million across 94 deals, down from $90.30 million recorded in the previous trading session.

The latest figures also showed that interbank FX turnover has fallen sharply over the past two trading sessions from an intra-week high of $269.90 million. Despite the slowdown in CBN foreign exchange interventions, analysts expect the naira to remain within a relatively stable range for the rest of 2026, supported by tighter monetary policy and improved market confidence.

Earlier, the Central Bank of Nigeria (CBN) unveiled sweeping changes to its foreign exchange framework, granting Nigerians greater freedom to access and use funds held in domiciliary accounts as the country's FX market shows signs of improving liquidity. Contained in the newly released Foreign Exchange Manual 2026, the reforms reverse several restrictions introduced during the COVID-19 era and signal a broader shift toward a more liberalised foreign exchange market.

For Nigerian consumers and businesses, the mixed performance means continued uncertainty in the parallel market, but the official rate stability suggests the CBN's tighter monetary policy is providing some cushion against sharper volatility.