The naira continued to show resilience on Tuesday, trading at N1,485 per US dollar in the parallel market, slightly lower than Monday’s rate of N1,480 per dollar.
This reflects a relatively stable currency performance amid ongoing pressures in the foreign exchange landscape.
Year to date, the naira has appreciated by more than seven percent in the official market, now exchanging at around N1,454 per dollar.
Analysts note that the gap between the official and parallel markets has narrowed considerably, currently ranging between N5 and N30, compared to over N100 a year ago, signaling improved market stability.
Experts attribute this positive trend to several regulatory reforms implemented by the Central Bank of Nigeria (CBN) and other financial authorities.
Key measures include the liberalisation of access to the official foreign exchange window, which has allowed businesses and individuals easier access to dollars, reducing pressure on parallel market rates.
In addition, the CBN has removed restrictions on 43 items that were previously barred from accessing foreign exchange, enhancing liquidity in the market.
The adoption of the Electronic Foreign Exchange Matching System has also played a pivotal role by promoting transparency and efficiency in currency trading, ensuring rates are determined by market forces rather than artificial controls.
Market observers believe that these reforms, combined with growing foreign inflows and stronger revenue from exports, have contributed to a more predictable and stable exchange rate environment.
While challenges remain, the narrowing gap between official and parallel market rates suggests that Nigeria’s forex market is moving toward greater convergence and efficiency.
