The Naira on Monday opened the week with relative stability against the United States Dollar across the official Nigerian Foreign Exchange Market (NFEM) and the parallel market.
Data monitored on Dec. 8 showed that the indicative exchange rate in the official window stood at N1,449.84 per dollar, reflecting similar levels recorded at the end of the previous week.
Market operators attributed the stability to the Central Bank of Nigeria’s recent liquidity and monetary policy interventions, which they said had helped moderate pressure on the official market.
Analysts noted that the NFEM continues to operate under thin liquidity, a situation that typically feeds volatility, but added that the Naira had shown resilience despite persistent foreign exchange demand.
In the parallel market, the Naira traded at between N1,480 and N1,490 per dollar in major commercial cities, including Lagos and Abuja. Dealers said the rate varied across locations but maintained a premium over the official market.
The sustained gap between the official and parallel market rates, according to financial analysts, continues to pose concerns for businesses and investors. They explained that the divergence encourages speculation and discourages formal foreign exchange inflows.
They said market participants were monitoring possible policy pronouncements and changes in foreign currency supply, especially as the year-end approaches.