By Seun Ibiyemi
The Nigerian naira maintained a stable performance against the United States dollar on Monday, trading at ₦1,370.33 per dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting continued stability in the country’s foreign exchange market.
Data from the official trading window showed the local currency holding steady as the Central Bank of Nigeria (CBN) continued to implement liquidity management measures aimed at improving price discovery and reducing exchange rate volatility.
The official exchange rate is derived from a volume-weighted average of completed transactions at the NFEM.
In the parallel market, the dollar traded at about ₦1,400 per dollar for selling, while the buying rate hovered around ₦1,385/$, leaving a spread of roughly ₦30 between the official and unofficial markets.
The relatively narrow gap between the two markets has been viewed by analysts as a sign of improved foreign exchange liquidity and increased market confidence following ongoing reforms in the FX market.
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Currency traders expect the naira to remain broadly stable in the near term, supported by periodic dollar sales by the CBN and moderating demand pressures in the foreign exchange market.
However, exchange rates in the parallel market may vary across cities and dealers depending on prevailing demand, supply and transaction volumes, with businesses and individuals advised to confirm rates with authorised dealers before conducting foreign exchange transactions.
