Exchange Rate Today: Naira Shows Mild Fluctuation Against Dollar as Market Stability Persists
- The Naira recorded slight fluctuations but remained relatively stable against the dollar across the parallel and official markets, with a noticeable gap
- It opened at N1,367.18 and weakened slightly to about N1,372.21 in early official trading, while the parallel market rates ranged between N1,395 and N1,410
- High interest rates and foreign portfolio inflows are supporting forex supply, as analysts say exchange rates may adjust further during the day
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Naira recorded slight fluctuations against the US dollar at the start of trading, maintaining a relatively stable trend across both official and parallel foreign exchange markets, Vanguard reported.
Source: Getty Images
Early data from the Nigerian Foreign Exchange Market (NFEM) and informal trading segments indicate that demand for foreign currency remains steady, while the naira continues to hold firm following recent interventions by the Central Bank of Nigeria.
Movement in official market
At the official NFEM window, the naira opened at around N1,367.18 to the dollar before weakening slightly in early trading.
By about 3:00 a.m., the exchange rate had moved to approximately N1,372.21 per dollar, reflecting a marginal depreciation of about 0.37 per cent.
The gradual shift suggests a relatively balanced level of liquidity in the official market, with traders aligning their positions based on prevailing economic indicators.
Parallel market reflects retail demand
In the parallel market, which reflects immediate retail demand, exchange rates showed a slightly higher range.
In key cities such as Lagos and Abuja, Bureau De Change operators quoted the dollar between N1,395 and N1,410 for selling, depending on transaction volume.
Despite the gap, the spread between official and parallel market rates remains relatively narrow, indicating reduced speculative pressure compared to previous periods of volatility.
Factors supporting naira stability
Analysts attribute the naira’s current performance to sustained high interest rates and the monetary policy stance of the Central Bank of Nigeria.
According to market observers, the high-yield environment has encouraged foreign portfolio inflows through carry trade opportunities, helping to boost foreign exchange supply.
While borrowing costs remain elevated for businesses, the inflows have helped limit sharp depreciation in the currency.
Source: Getty Images
Outlook for traders and importers
For importers and individuals seeking foreign exchange, the market is currently witnessing a steady supply.
However, analysts note that exchange rates could adjust further as trading activities continue throughout the day across different financial centres.
CBN confirms gap between official, parallel markets
Legit.ng earlier reported that the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, said reforms in Nigeria’s foreign exchange market have reduced the gap between the official and parallel market rates.
Cardoso noted that the premium between the two markets has dropped from about 50% in 2022 to less than 2% on average in 2025.
According to him, the reforms have also improved liquidity in the foreign exchange market and strengthened investor confidence.
Source: Legit.ng
