By Seun Ibiyemi
The naira traded largely stable against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, supported by sustained foreign exchange reforms and improved market liquidity despite lingering demand pressures in the parallel market.
Official market data showed the local currency closed at ₦1,372.96/$, maintaining its recent stability as the Central Bank of Nigeria (CBN) continued efforts to improve liquidity and deepen confidence in the foreign exchange market.
At the parallel market, the dollar exchanged at about ₦1,400 for buying and ₦1,410 for selling, reflecting continued demand for foreign exchange outside the official window, although the gap between both markets has narrowed significantly compared with previous months.
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The naira’s resilience comes amid ongoing reforms by the CBN aimed at enhancing transparency, improving price discovery and attracting foreign portfolio inflows into the official market. Market participants continue to monitor oil export receipts, foreign capital inflows and monetary policy decisions as key drivers of the exchange rate.
Currency dealers said the local currency has remained relatively stable in recent sessions, aided by regular dollar sales by the CBN and easing speculative demand.
Analysts noted that while pressure persists in the parallel market, improved liquidity in the official market has helped moderate exchange rate volatility.
They, however, warned that global crude oil prices, foreign exchange inflows and investor confidence will remain critical to sustaining the naira’s current stability in the coming weeks.
