The naira weakened further in the parallel foreign exchange market on Thursday, falling to N1,445 per dollar from N1,430 recorded the previous day, even as the currency strengthened at the official market.
The latest movement widened the gap between the parallel-market and official exchange rates to N86.50 per dollar, highlighting renewed divergence between the two segments of Nigeria’s foreign exchange market.
Bureau de Change (BDC) operators in Abuja quoted the dollar at N1,445 on Thursday, reflecting increased demand for foreign currency in the informal market.
At the Nigerian Foreign Exchange Market (NFEM), however, the naira appreciated to N1,358.50/$ from N1,364/$ on Wednesday, according to data from the Central Bank of Nigeria (CBN).
The official rate therefore strengthened by about 0.37%, while the parallel-market rate moved in the opposite direction, depreciating by N15.
NFEM data showed that the dollar traded between N1,348 and N1,363.75 during Thursday’s session.
Festive-season demand drives pressure
The renewed pressure on the parallel market was attributed partly to increased demand for dollars ahead of the festive season.
The divergence between the two markets also comes amid continued concerns over speculation and arbitrage, which can widen the difference between official and informal exchange rates.
Meanwhile, trading activity at the official market increased significantly.
Interbank transactions at the NFEM stood at about $644.85 million on Thursday, compared with approximately $93.01 million recorded on Wednesday.
The sharp increase in official-market activity occurred despite the naira recording a modest appreciation against the dollar.
Reserves continue to rise
The exchange-rate movement comes against the backdrop of Nigeria’s improving external reserve position.
Gross foreign exchange reserves increased by $295.35 million in October 2026, although this represented the slowest monthly increase recorded so far this year.
Nigeria’s net foreign exchange reserves, however, rose to a record $46 billion, up from $34.80 billion at the end of 2025.
The latest figures suggest that the country’s reserve position has strengthened even as the naira continues to experience differing pressures across the official and parallel markets.
Globally, the US dollar has also remained strong, trading near a 19-month high and putting pressure on several major currencies.
The euro declined to about $1.1049, while the Japanese yen traded near 159.875 to the dollar, amid renewed concerns over possible intervention by Japanese authorities.
The latest movement leaves the parallel-market rate significantly above the official NFEM rate, with the N86.50 spread underscoring the continuing challenge of maintaining convergence across Nigeria’s foreign exchange market.
Nairametrics
