By Seun Ibiyemi
The naira recorded a mixed performance against the United States dollar on Tuesday, maintaining stability at the official foreign exchange market while weakening slightly in the parallel market as demand for foreign currency remained elevated.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency traded at approximately ₦1,367.29 per dollar at the official market, reflecting continued stability supported by ongoing liquidity management measures.
In the parallel market, however, the dollar exchanged at about ₦1,400, indicating a modest depreciation of the naira outside the official trading window.
The spread between the official and parallel market rates remained relatively narrow at around ₦33 per dollar, suggesting that recent foreign exchange reforms have continued to moderate volatility.
Foreign exchange analysts attributed the currency’s resilience at the official window to improved market liquidity and the Central Bank of Nigeria’s continued efforts to enhance transparency and stability in the foreign exchange market.
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They noted that the naira’s performance in the coming days will depend largely on the availability of dollar liquidity, crude oil export earnings, foreign portfolio investment inflows and sustained interventions by the monetary authorities.
Analysts also observed that demand for foreign exchange from importers, manufacturers and other businesses continues to exert pressure on the parallel market despite the relative stability recorded at the official window.
The latest performance underscores the gradual convergence between the official and parallel market exchange rates, a development many market participants say reflects improving confidence in Nigeria’s foreign exchange market.
