Nigeria’s currency posted a mixed outing on Wednesday as the naira exchange rate weakened slightly at the official market but gained ground against the United States dollar in the parallel market, reflecting shifting demand and improving trading activity.
At the Nigerian Foreign Exchange Market (NFEM), the naira closed at an indicative exchange rate of ₦1,382 per US dollar, according to data released by the Central Bank of Nigeria (CBN). The figure represents a slight depreciation from the previous session’s closing rate of about ₦1,380.50/$, indicating a modest decline in the local currency’s value.
The story was different in the parallel market, where the naira appreciated to around ₦1,412 per dollar, improving from approximately ₦1,420/$ recorded a day earlier. The gain reduced the gap between the official and black market exchange rates to about ₦30 per dollar, one of the narrowest spreads seen in recent weeks.
Trading activity also picked up at the official foreign exchange window. Market data showed a noticeable increase in interbank turnover compared with the previous trading session, suggesting stronger participation and improved liquidity among market players.
The Central Bank of Nigeria has consistently maintained that the exchange rate at the Nigerian Foreign Exchange Market is determined through a volume-weighted average of completed transactions. The apex bank says this mechanism ensures that the NFEM rate remains the country’s official benchmark for foreign exchange transactions.
Financial analysts believe the naira’s next movement will largely depend on the availability of foreign exchange, demand from importers, and overall market liquidity. They also point to the impact of ongoing monetary and fiscal policies designed to improve confidence and stability in Nigeria’s foreign exchange market.
With both the official and parallel market rates moving in different directions, investors and businesses will continue to watch developments closely as they assess the outlook for the naira in the coming days.
