The Nigerian naira showed signs of recovery in the parallel market on Thursday, trading at ₦1,590 per dollar—a ₦20 appreciation from Wednesday’s rate of ₦1,610/$.
This marks the third time since February 2024 that the local currency has strengthened to the ₦1,500 range against the US dollar.
However, the official Nigerian Foreign Exchange Market told a different story, with the naira experiencing a slight depreciation.
Data from the Central Bank of Nigeria showed the currency closing at ₦1,554/$ on Thursday, down from ₦1,545/$ the previous day—representing a ₦9 decline.
Notably, the gap between official and parallel market rates narrowed significantly to ₦36 per dollar, a sharp reduction from the ₦70 difference recorded the day before. This development suggests growing stability in the foreign exchange market, with the parallel market showing increased confidence in the naira despite ongoing fluctuations in the official window.
Market analysts attribute the naira’s parallel market gains to improved dollar liquidity and cautious optimism among traders, though they caution that the currency’s performance remains vulnerable to global oil prices and domestic economic factors.
The CBN has maintained its intervention in the forex market to manage volatility, but the contrasting movements between official and unofficial markets highlight the ongoing challenges in achieving full exchange rate stability.
The narrowing spread between official and parallel rates—now at its lowest point in weeks—could signal a gradual convergence of Nigeria’s dual exchange rate system, a key objective of the central bank’s forex management strategy.
