By Seun Ibiyemi
The Nigerian naira maintained a relatively stable performance against the United States dollar on Wednesday, reinforcing recent gains recorded in the foreign exchange market as investors and businesses continued to monitor liquidity conditions and foreign exchange supply.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the naira traded around ₦1,360.55 per dollar at the official market, reflecting marginal movement from the previous trading session and underscoring the currency’s sustained stability in recent weeks.
The local currency appreciated slightly from the ₦1,362.84/$ recorded earlier in the week, gaining about ₦2.29 against the dollar as improved market confidence and stronger external reserves continued to support the foreign exchange market.
At the parallel market, the naira traded between ₦1,400 and ₦1,405 per dollar, leaving a relatively narrow gap of about ₦40 between the official and unofficial markets, a development analysts say reflects improved alignment in Nigeria’s foreign exchange system.
Market observers noted that the currency has remained within the ₦1,360–₦1,375 range over the past week, signalling reduced volatility compared with previous periods characterised by sharp fluctuation
Analysts attributed the relative stability to ongoing foreign exchange reforms by the Central Bank of Nigeria (CBN), improved liquidity management and rising external reserves, which recently surpassed the $50 billion mark.
READ ALSO:AKOD, Obasa move to reconstruct Akin Doherty road after joint inspection
The naira also recorded modest gains against the euro in the official market, although it experienced slight pressure against the British pound during the latest trading session.
Financial market participants said continued stability in the exchange rate remains crucial for inflation management, investor confidence and business planning, particularly for manufacturers and import-dependent sectors of the economy.
While challenges relating to foreign exchange demand persist, analysts believe the narrowing spread between the official and parallel markets suggests that recent policy measures are gradually improving price discovery and reducing speculative pressures in the market.
With external reserves strengthening and exchange rate volatility moderating, stakeholders will be watching closely to see whether the naira can sustain its current momentum in the coming weeks.
