N1,418/$: Traders Sell Dollars at New Rate in Official, Parallel Markets
- The naira rallies, strengthening against the US dollar amid improved economic outlook and easing demand pressures
- Central Bank reports modest gains, with the naira closing at N1,419.28 per dollar in the official market
- Improved forecasts predict 4.49% GDP growth in 2026, boosting confidence in Nigeria's economic stability
The naira recorded a broad-based rally on Thursday, January 15, 2026, strengthening against the US dollar in both the official and parallel foreign exchange markets.
The appreciation reflects easing demand pressures and renewed optimism around Nigeria’s economic outlook as recent reforms begin to show measurable impact.
Source: Getty Images
During intraday trading, the exchange rate touched a low of N1,418 per dollar, supported by the absence of major international payment pressures.
The local currency also hit an intraday high of N1,422 before closing relatively stronger, according to the Central Bank of Nigeria’s daily foreign exchange update.
Modest gains at the official window
At the Nigerian Foreign Exchange Market, the naira appreciated marginally by 5 basis points, or N0.75, to close at N1,419.28 per dollar.
Improved dollar supply conditions helped moderate demand, keeping trading within a narrow band throughout the session.
Market analysts noted that the calmer trading pattern suggests a gradual rebalancing in the FX market, as liquidity improves and speculative pressures ease.
Parallel market follows suit
Sentiment also improved in the parallel market, where the naira strengthened to N1,465 per dollar.
The gain narrowed the spread between the official and informal markets, reinforcing confidence that price discovery is becoming more aligned across FX segments.
Traders attributed the movement to reduced panic demand and expectations that macroeconomic stability will improve further in 2026.
Stronger growth outlook lifts confidence
The currency rally comes amid projections of stronger economic growth and moderating inflation this year.
At a hybrid roundtable organised by the Chartered Institute of Bankers of Nigeria Centre for Financial Studies in collaboration with B. Adedipe Associates, the CBN projected real GDP growth of 4.49% in 2026.
International institutions share a similar outlook. The International Monetary Fund has forecast Nigeria’s economy to grow by 4.2% in 2026, driven by higher oil production, improved security conditions, and sustained policy discipline.
Reserves rise as global markets shift
Nigeria’s external reserves also improved, rising by $42.88 million to $45.82 trillion, supported by inflows from multiple sources and recent gains in oil prices.
Meanwhile, global oil prices slipped after easing geopolitical tensions. Brent crude fell to around $63.60 per barrel, while US West Texas Intermediate dropped to about $59.05. Gold prices also declined as safe-haven demand softened.
Source: Getty Images
Overall, the naira’s performance signals cautious optimism, with markets responding positively to improving fundamentals at home and reduced volatility abroad.
Exchange rate gap widens
Legit.ng earlier reported that the gap between Nigeria’s official and parallel market exchange rates widened further last week as tight dollar supplies in the informal market pushed the naira in opposite directions across FX windows.
While the naira posted a modest gain at the official market, pressure intensified in the parallel market, where scarcity of foreign exchange drove the dollar higher and expanded the spread between both rates.
At the official window, the naira appreciated week on week, supported by inflows from foreign portfolio investors and increased supply from local market participants.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
