By Seun Ibiyemi
The naira traded relatively stable against the United States dollar on Tuesday, maintaining recent gains amid sustained foreign exchange liquidity and improving investor confidence in the market.
Data from the Nigerian Foreign Exchange Market (NFEM) showed that the local currency exchanged at approximately N1,366.41 per dollar at the official market, remaining within the N1,350-N1,370 range that has characterised trading in recent weeks.
The stability of the naira has been supported by improved foreign exchange inflows, increased participation by foreign portfolio investors and ongoing reforms aimed at enhancing transparency and efficiency in the foreign exchange market.
At the parallel market, the dollar traded around N1,400 for buying and between N1,410 and N1,420 for selling, depending on location and dealer quotations.
The relatively narrow gap between the official and parallel market rates reflects growing convergence across both segments of the market.
Currency dealers said demand for the greenback from importers, travellers and businesses remained steady, while improved liquidity conditions helped prevent significant pressure on the local currency.
Analysts noted that the naira’s performance continues to benefit from stronger foreign exchange reserves, sustained autonomous inflows and investor confidence in the market. They, however, cautioned that exchange rate movements will remain influenced by foreign exchange inflows, global oil prices and domestic economic conditions.
Market observers said the currency has shown greater resilience in recent months compared to previous periods of volatility, with reforms in the foreign exchange market contributing to improved price discovery and stability.
As businesses and investors continue to monitor market developments, stakeholders expect the naira to remain broadly stable in the near term, supported by steady dollar inflows and improving market fundamentals.
