Naira strengthens to N1,409/$ in parallel market, official rate hits N1,374.5
By Aboki Forex —
The naira appreciated to N1,409 per dollar in the parallel market yesterday, up from N1,416 per dollar on Monday. In the official Nigerian Foreign Exchange Market (NFEM), the local currency also gained ground, settling at N1,374.5 per dollar.
Parallel and official market rates
Data from the Central Bank of Nigeria (CBN) showed that the indicative exchange rate for the naira fell to N1,374.5 per dollar from N1,378.5 per dollar on Monday. This represents a N4 appreciation for the naira in the official window.
The margin between the parallel and official markets narrowed to N34.5 per dollar from N37.5 per dollar on Monday, reflecting tighter convergence between the two rates.
Turnover rises at NFEM
Interbank turnover at the NFEM rose by 21.2 percent to N322.7 million yesterday, up from N266.2 million on Monday. The increase in turnover signals improved liquidity and activity in the official foreign exchange market.
Market participants attributed the naira's gains to continued dollar supply and reduced demand pressure. The CBN has maintained its interventions in the forex market in recent weeks, helping to stabilise the currency.
What this means for the naira and businesses
The narrowing gap between the parallel and official rates suggests that forex market reforms are gradually improving price discovery. For Nigerian businesses and consumers, a stronger naira could ease the cost of imported goods and raw materials in the coming weeks, though sustained gains will depend on continued dollar inflows and fiscal discipline.