GistReel
The naira traded at about ₦1,324–₦1,330 per dollar at the Nigerian Foreign Exchange Market (NFEM) and ₦1,375 buying and ₦1,385 selling in the parallel market on Wednesday, as the local currency maintained relative stability against the United States dollar.
The latest figures indicate that the difference between the official and parallel-market rates has remained relatively contained, suggesting reduced volatility compared with periods of wider disparities between the two segments.
Official exchange rate remains within narrow range
At the official foreign exchange market, the dollar hovered between ₦1,324 and ₦1,330, with trading showing limited movement around that range.
The NFEM is the official platform for foreign exchange transactions, with the Central Bank of Nigeria (CBN) continuing to oversee measures aimed at improving market liquidity and promoting greater stability in the currency market.
The naira’s recent performance follows modest gains recorded earlier in the week, keeping the currency within a relatively narrow trading range against the dollar.
Dollar sells for ₦1,385 in parallel market
In the parallel market, Bureau De Change (BDC) operators quoted the dollar at approximately ₦1,375 for buying and ₦1,385 for selling.
The parallel market remains an important reference point for individuals and businesses seeking foreign currency outside the official market, including some travellers, small-scale importers and retail traders.
With the dollar selling at around ₦1,385 compared with an official rate near ₦1,330 at the upper end of the reported NFEM range, the difference between both markets stood at roughly ₦55 per dollar.
For someone buying $100 at the parallel-market selling rate, the transaction would cost about ₦138,500, based on the quoted rate.
Market conditions remain under watch
The movement of the naira is expected to remain closely linked to the availability of foreign exchange and changes in dollar demand.
Market participants are watching factors such as capital inflows, crude oil export proceeds and seasonal demand for foreign currency, all of which can influence liquidity and exchange-rate movements.
The level of demand for dollars could also become an important factor as the third quarter comes to an end, particularly if businesses and other market participants increase their foreign exchange requirements.
For now, the relatively narrow movement in both markets points to a period of reduced exchange-rate volatility, although the naira-dollar rate remains subject to changes in foreign exchange supply, demand and broader market conditions.