Banks, Traders Quote New Rate for Dollar as Naira Continues Rally in all Markets
- The naira appreciates to ₦1,335.95 per dollar, showing improved market confidence and liquidity
- External reserves rise to $47.8 billion, bolstered by increased oil inflows and FX management
- Cautious optimism prevails as analysts predict stability in the naira amidst global economic factors
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency continued its upward momentum on Tuesday, with the naira appreciating further against the United States dollar at the official market.
Data from the Central Bank of Nigeria shows that the naira closed at ₦1,335.95 per dollar at the Nigerian Foreign Exchange Market, improving by ₦8.05 compared to the previous rate of ₦1,344.00 per dollar.
Source: Getty Images
The steady gain reflects stronger foreign exchange supply relative to demand pressures in the market.
Data from from the Central Bank of Nigeria (CBN) showed that during the trading session, the local currency moved within a band of ₦1,318.00 to ₦1,344.00 per dollar, highlighting increased liquidity and improved market confidence.
Analysts say the narrowing volatility signals a more balanced FX environment compared to the sharp swings seen in previous months.
Parallel market follows the trend
The rally was not limited to the official window. In the parallel market, commonly referred to as the black market, the naira also strengthened by 0.87 per cent to trade around ₦1,371 per dollar.
Traders attribute the improvement to sustained foreign exchange interventions and targeted dollar sales to informal sector operators.
Reports indicate that about $150,000 in FX was made available to support small-scale players, helping ease speculative pressure and align rates more closely with official market trends.
The convergence between both markets is seen as a positive signal for overall currency stability, reducing arbitrage opportunities and speculative trading.
External reserves rise to $47.8 billion
According to reports by MarketForces Africa, Nigeria’s external reserves have also recorded a fresh increase, adding momentum to the naira’s recovery. Latest figures show reserves rising to $47.80 billion, representing a $135.75 million increase.
The build-up has been supported by stronger oil-related inflows and improved foreign exchange management. Higher crude oil receipts, alongside renewed investor confidence, have boosted the country’s FX buffers.
Anchoria Securities Limited noted that supportive supply conditions and consistent policy measures are helping anchor confidence in the currency market.
According to the firm, the steady reserve growth strengthens the central bank’s ability to defend the naira against excessive volatility.
Market outlook remains cautiously optimistic
Market participants expect the naira to continue trading largely in line with prevailing supply and demand dynamics. With external reserves improving and FX inflows remaining relatively stable, short-term pressures appear contained.
However, analysts caution that global oil prices, capital flows, and domestic liquidity conditions will remain key variables influencing the currency’s trajectory.
Source: Getty Images
Sustained fiscal discipline and continued FX market reforms are also critical to maintaining the current stability.
For now, banks and currency traders are quoting a firmer rate for the dollar across trading windows, reflecting renewed optimism in Nigeria’s foreign exchange market.
If current trends persist, the naira’s rally could further narrow the gap between official and parallel market rates, reinforcing confidence among businesses and investors alike.
Dollar appreciates against naira, new exchange rates emerge
Legit.ng earlier reported that the naira weakened against the US dollar on Friday, February 13 at the Nigerian Foreign Exchange Market (NAFEM), slipping by N1.76 or 0.13% to close at N1,355.42/$1 on Friday, February 13 with N1,353.66/$1 recorded a day earlier.
Data from the official market showed that the local currency came under renewed pressure amid sustained demand for foreign exchange and the absence of fresh intervention from the Central Bank of Nigeria (CBN).
However, the Nigerian currency posted gains against other major currencies in the same window.
Source: Legit.ng
