By Seun Ibiyemi
The Nigerian naira recorded a mixed performance on Tuesday, reflecting continued volatility in the foreign exchange market amid ongoing efforts to stabilise the currency.
At the official window, data from the Central Bank of Nigeria indicated that the naira traded within a relatively stable range against the United States dollar, supported by regulatory interventions and improved liquidity in the formal market.
However, in the parallel market, the local currency showed signs of pressure as demand for foreign exchange remained high, particularly from importers and individuals seeking invisible transactions.
Market analysts attributed the divergence between the official and parallel market rates to persistent supply constraints, speculative demand, and structural imbalances in the foreign exchange system.
Despite these challenges, recent policy measures by the Central Bank, including tightening monetary conditions and enhancing transparency in FX transactions, are gradually improving confidence among investors.
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Experts note that the naira’s performance continues to be influenced by broader macroeconomic factors such as inflation, external reserves, oil price movements, and capital inflows.
They added that sustained reforms and increased foreign exchange earnings would be critical in achieving long-term stability in the currency market.
The naira’s trajectory remains closely watched by investors and businesses, given its significant impact on import costs, inflation, and overall economic activity in Nigeria.
