Naira Gains N0.38 Against Dollar at Official Market, First Rise This Week

The naira appreciated marginally against the United States dollar at the official foreign exchange market on Wednesday, its first gain this week after two straight days of depreciation.

Data from the Central Bank of Nigeria (CBN) showed the naira traded at N1,332.59 to the dollar on Wednesday, compared with N1,332.97 on Tuesday. That works out to a gain of N0.38 day on day.

Parallel market stays flat

The picture was different at the parallel market, where the naira closed flat at N1,375 per dollar on Wednesday, unchanged from Tuesday's rate.

The mixed performance left a gap of about N42 between the official rate and the parallel market rate, a spread that has persisted in recent weeks.

Reserves hold at $55.10 billion

The CBN data put the country's external reserves at $55.10 billion. The reserves are a key buffer for defending the currency and meeting import bills and other obligations.

Earlier in the week, the naira had weakened against the dollar on both Monday and Tuesday before Wednesday's slight recovery at the official window.

What it means

The N0.38 gain is small in absolute terms, but it breaks the two-day losing streak at the official window. For importers and businesses sourcing dollars, the wide spread between the official and parallel rates still determines the real cost of settlement.

The flat parallel market rate suggests demand pressure held steady through midweek, while the reserves figure gives the CBN room to keep managing supply at the official window.