The Nigerian naira posted slight mixed performances on Wednesday, with modest gains in the parallel (street) market and mild weakness in the official foreign exchange window.
In the parallel market, the naira strengthened a bit, closing at ₦1,500 per US dollar, up from ₦1,505 traded earlier in the week.
This reflects renewed activity among independent dealers and slightly improved dollar supply.
At the Nigerian Foreign Exchange Market (NFEM), the naira experienced a mild depreciation, finishing at ₦1,478 per US dollar, down from ₦1,480.15 on the prior day.
As a result, the gap between the parallel and official rates narrowed to about ₦22, from around ₦25 earlier.
Against other major currencies:
In the parallel market, the pound sterling traded near ₦2,075, while the euro exchanged around ₦1,665.
In the official window, the pound was quoted at ₦2,030.50 and the euro at ₦1,620.45.
(These movements mirror the pattern of modest divergence between the official and informal segments of the FX market.)
Analysts attribute the slight recovery in the street market to improved dollar inflows from diaspora remittances, independent supply channels, and seasonal trade receipts. That said, demand pressures remain strong—many corporates, importers, students, and travellers still depend on the parallel market to meet obligations not fully serviced by the formal window.
Meanwhile, the official market continues to be cushioned by Central Bank of Nigeria (CBN) interventions, which help moderate volatility. The narrowing spread suggests that recent policy tweaks and FX reforms may be modestly aligning the two markets.
Looking ahead, traders expect the dollar to trade in the ₦1,495 to ₦1,505 range in the parallel market, assuming stable dollar supply. The CBN is also expected to maintain targeted FX interventions aimed at reducing sharp swings and improving market confidence.
While the short-term dynamics are encouraging, sustainable stability of the naira will depend on structural measures—such as boosting non-oil exports, attracting meaningful foreign direct investment, deepening FX market liquidity, and consistent macroeconomic discipline.
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