By Seun Ibiyemi
Nigeria’s currency, the Nigerian naira, recorded mixed performance against the United States dollar on Friday as trading closed with slight fluctuations across the official and parallel foreign exchange markets.
At the official market, the naira traded around ₦1,385 to the dollar at the Nigerian Foreign Exchange Market, reflecting mild depreciation compared with earlier sessions during the week. Market data indicated that the dollar traded close to ₦1,390 by the end of the session.
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Currency dealers said liquidity in the market remained relatively stable under the “willing-buyer, willing-seller” framework operated by the Central Bank of Nigeria, which has helped moderate volatility in recent months.
In the parallel market, also known as the black market, the naira traded between about ₦1,395 and ₦1,405 per dollar during the day’s trading, leaving only a narrow gap between the official and informal market rates.
Market participants attributed the modest pressure on the local currency to routine demand from travellers and small businesses seeking foreign exchange toward the end of the trading week.
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Analysts noted that despite the slight movement, the naira has remained relatively stable in recent weeks amid improved foreign exchange inflows and stronger external reserves, which have helped support market confidence.
Meanwhile, the Central Bank of Nigeria has continued interventions aimed at maintaining liquidity and ensuring orderly market operations as the country pursues reforms to stabilise the foreign exchange market.
Economic watchers say the performance of the naira in the coming weeks will depend largely on foreign exchange inflows, monetary policy decisions and the pace of ongoing reforms in the currency market.
