The naira appreciated against the United States dollar on Tuesday, strengthening in both the parallel market and the official Nigerian Foreign Exchange Market (NFEM), according to data from the Central Bank of Nigeria (CBN).
In the parallel market, the naira rose to N1,455 per dollar from N1,465 recorded on Monday, reflecting a N10 gain within 24 hours.
Similarly, the local currency strengthened in the NFEM, where it appreciated to N1,367 per dollar. CBN data showed that the indicative exchange rate improved from N1,384.5 per dollar on Monday to N1,367 per dollar, representing a N17.5 appreciation.
Despite the gains recorded across both markets, the margin between the parallel market rate and the official exchange rate widened. The gap increased to N88 per dollar on Tuesday from N80.5 per dollar the previous day, highlighting continued disparities in foreign exchange pricing.
Market analysts attribute the naira’s recent appreciation to sustained foreign exchange reforms, improved liquidity at the official window, and ongoing interventions by monetary authorities aimed at stabilising the currency.
However, they caution that volatility may persist in the short term due to pressure from import demand, speculative activities, and broader macroeconomic challenges.
The Central Bank of Nigeria has maintained that its ongoing reforms in the foreign exchange market are designed to promote transparency, enhance price discovery, and restore confidence among investors and market participants.
