The naira closed the mid-week trading session at N1,423 to the dollar at the official foreign exchange market, maintaining relative stability amid continued weakness in the parallel market.
Data from the Central Bank of Nigeria (CBN) show a mixed performance across both windows, with official rates holding firm while pressures persist outside the regulated market.
At the Nigerian Foreign Exchange Market (NFEM), the naira traded at N1,420.5/$ on Monday, strengthened marginally to N1,420/$ on Tuesday, before depreciating to N1,423/$ on Wednesday.
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Last week, the currency opened at N1,425/$ on Monday and appreciated gradually to close at N1,417.95/$, reflecting intermittent gains at the official window.
In contrast, the parallel market continued to remain under pressure. The naira opened at N1,483/$ on Monday, held the same rate on Tuesday, and weakened further to N1,486/$ on Wednesday.
The spread between the official and parallel market rates narrowed slightly to N63, from N73 recorded last week, which was the widest margin since February 2025.
On a year-to-date basis, the naira has opened 2026 at N1,428/$, underscoring sustained pressure despite episodes of relative stability at the official market.
Market data indicate that while official rates show modest convergence, intense demand continues to drive weakness in the parallel segment.
The current parallel-market rally is the worst since mid-December 2025, when the naira fell to N1,492/$ on December 17. Between December 11 and 22, the currency traded persistently above the N1,480/$ psychological level, highlighting recurring stress in the informal market.
Analysts say the persistence of wide spreads reflects structural constraints in Nigeria’s foreign exchange market, even as official stability points to the impact of ongoing CBN reforms and interventions.
Global currency movements also shaped sentiment. The U.S. dollar held firm against major currencies after President Donald Trump withdrew tariff threats against several European NATO countries, easing investor concerns that had earlier triggered broad selloffs in U.S. assets.
The dollar traded at $1.1685 per euro and 0.7953 Swiss franc, while the Australian dollar rose to a 15-month high on stronger employment data.
Sustained improvement in the naira, analysts note, will depend on stronger foreign exchange inflows, improved investor confidence, and reduced reliance on the parallel market.
Earlier in the week, the naira slipped marginally at the official market, closing at N1,420.5/$ on Monday, as global dollar sentiment softened amid renewed U.S. economic and geopolitical risks.
