Naira holds steady at official market, trades at N1,358/$ amid improved FX liquidity

By Seun Ibiyemi

The Nigerian naira maintained relative stability against the United States dollar on Thursday, trading at about N1,358/$ at the official foreign exchange market, as improved liquidity and foreign investor activity continued to support the local currency.

Market data showed the naira exchanging at approximately N1,358 to the dollar at the Nigerian Foreign Exchange Market (NFEM), compared with N1,359 recorded a week earlier, reflecting a marginal appreciation and continued resilience in the face of global economic uncertainties.

Currency traders attributed the naira’s steady performance to sustained foreign exchange inflows and increased participation by international investors purchasing local financial assets.

Analysts noted that foreign exchange sales by international banks to acquire Nigerian securities have helped stabilize the market.

At the parallel market, the naira traded around N1,403 per dollar, leaving a gap of about N45 between the official and unofficial markets.

Despite the disparity, market observers said the spread remains manageable compared to previous periods of heightened volatility.

Traders expressed optimism that the naira would continue to trade within the N1,350 to N1,360 range in the near term, barring any major disruptions to foreign exchange supply or investor sentiment.

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The currency’s stability comes amid ongoing reforms in Nigeria’s foreign exchange market aimed at improving transparency, boosting liquidity and attracting foreign capital.

Economic analysts said developments in global oil prices, external reserves and capital inflows would remain key factors influencing the naira’s performance in the coming weeks.

While demand for foreign exchange remains strong, improved market confidence has helped moderate pressure on the local currency.

The relative calm in the foreign exchange market is expected to provide some relief for businesses and importers who rely on stable exchange rates for planning and transactions.