Tag: Dollar To Naira

Nigeria’s national currency, the naira, has strengthened below the ₦1,400 to US dollar mark in the official foreign exchange market — a milestone last seen over a year ago. On Thursday, the Nigerian Foreign Exchange Market (NFEM) recorded the naira at ₦1,396.99 per US$1, signaling improved currency stability and positive market sentiment.

Key Exchange Rate Movements

• The naira moved from ₦1,400.48/$1 on Wednesday to ₦1,396.99/$1 on Thursday in official trading — marking a return below the critical ₦1,400 threshold.

• Intraday activity saw the currency hit a high of ₦1,400/$1 and a low of ₦1,367/$1 before closing the session at ₦1,385/$1.

• Earlier in the week, the official rate had been weaker: around ₦1,422/$1 (22 January) and ₦1,421/$1 (23 January), before gradually strengthening.

Parallel Market Trends

The naira also appreciated in the informal (parallel) foreign exchange market, where data from Cowry Asset Management Limited showed it strengthening by 1.06% to about ₦1,454 per US$1 — reflecting improved confidence across both official and informal FX segments.

Market Analyst Insights

Tilewa Adebajo, Chief Executive Officer of CFG Advisory, noted that the spread between official and parallel market rates has significantly narrowed, a positive development compared with the wide premium seen in earlier years.

Outlook

Analysts say that the naira’s recent performance reflects improved liquidity conditions and better foreign exchange supply dynamics in Nigeria’s forex markets. Continued gains depend on sustained FX inflows, macroeconomic stability, and ongoing financial reforms.

The Nigerian Naira on Friday recorded a mixed performance at the official and parallel foreign exchange markets.

Data from the Nigerian Foreign Exchange Market (NFEM) showed that the Naira closed at ₦1,449.38 to the dollar, reflecting a slight movement from the previous day’s rate.

According to reports the trading at the Investors’ and Exporters’ (I&E) Window recorded a high of ₦1,452.50 and a low of ₦1,449.38, indicating a relatively narrow band attributed to the Central Bank of Nigeria’s (CBN) liquidity management measures.

At the parallel market, the Naira appreciated marginally, trading at ₦1,475 per dollar for buying and ₦1,485 for selling, compared to the earlier average of ₦1,490 recorded within the week.

The spread between the official and unofficial windows remained a concern for analysts, though the slight gain in the parallel market reduced the premium to about ₦25.62–₦35.62.

Market watchers linked the day’s performance to steady global crude oil prices, increased diaspora remittances ahead of the festive season, and expectations around CBN’s interest rate stance aimed at curbing inflation and attracting foreign portfolio inflows.