New Exchange Rate Emerges as Naira Climbs in Official And Parallel Markets
- The naira appreciates in both official and parallel markets, driven by CBN's interventions
- Central Bank injects $700 million to boost dollar liquidity and restore confidence
- Nigeria's external reserves surpass $50 billion, strengthening currency stability prospects
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria’s currency strengthened across both official and parallel foreign exchange markets on Monday, signalling renewed confidence in the naira amid improved liquidity and policy support from the Central Bank of Nigeria (CBN).
At the Nigerian Foreign Exchange Market (NFEM) window, the naira appreciated by 0.62 per cent to close at ₦1,357.77 per dollar, marking one of its strongest performances in recent weeks.
Source: Getty Images
The local currency also recorded gains in the parallel market, where it traded around ₦1,395 per dollar, reflecting improving sentiment among traders and market participants across both regulated and informal segments of the foreign exchange market.
The simultaneous appreciation in both markets suggests that supply conditions and investor confidence may be gradually improving.
CBN intervention boosts dollar supply
A key driver behind the naira’s recent rally has been the increased intervention by the Central Bank of Nigeria in the foreign exchange market.
Over the past two weeks, the apex bank reportedly injected about $700 million into the FX market to ease pressure on the local currency and improve dollar liquidity.
This intervention helped the naira reverse earlier losses recorded in the previous week. By the close of last week, the currency had already strengthened by 1.98 per cent, or ₦27.02, to settle at ₦1,366.23 per dollar at the official market window.
The naira started the trading week around ₦1,405.62 per dollar but gradually strengthened over the course of the week, reaching its best levels by Friday.
Parallel market shows a positive trend
The parallel market, commonly referred to as the black market, also reflected the improving outlook for the currency.
During the same period, the naira appreciated by 1.06 per cent, closing the week around ₦1,415 per dollar.
However, the pace of appreciation in the official market slightly outperformed the parallel market, widening the premium between the two segments.
The gap between the two markets expanded to ₦48.77 per dollar, compared to ₦36.74 per dollar recorded in the previous week.
Currency analysts say the wider spread highlights the stronger influence of policy interventions in the official market compared to the more market-driven parallel segment.
Lower import demand supports naira
Another factor supporting the currency is the declining demand for foreign exchange used for imports.
Importation of petrol and several manufacturing inputs has slowed in recent weeks. Analysts attribute this partly to disruptions in global trade following tensions linked to the U.S.–Iran conflict, which has affected supply chains and shipping routes.
In addition, Nigeria’s local oil regulator has reduced the number of oil import licenses issued to marketers. This policy move has reduced the volume of dollar payments required for petroleum imports, easing pressure on the foreign exchange market.
With lower import demand, fewer dollars are being sourced from the market, helping stabilise the naira.
Reserves cross $50 billion
Nigeria’s external reserves also provided a major confidence boost to the market.
Despite global commodity price uncertainties, the country’s gross external reserves crossed the $50 billion mark, rising by $83.55 million, or 0.17 per cent, to reach $50.03 billion.
The increase in reserves strengthens the CBN’s ability to defend the currency and provide liquidity when necessary.
Source: Getty Images
Market participants say the combination of stronger reserves, sustained foreign portfolio inflows, and continued intervention from the apex bank could help maintain relative stability in the currency market in the near term.
Naira reverses, depreciates against dollar
Legit.ng earlier reported that the naira has again depreciated in the Nigerian foreign exchange market following rising dollar demand triggered by the ongoing war in the Middle East.
Data from the CBN showed that the naira fell to N1,425 per dollar on Monday, March 9, 2026, from N1,398 per dollar last weekend, reflecting a depreciation of N27.
The latest exchange rate is the lowest the naira has touched in the last 2 months.
Source: Legit.ng
