Naira Strengthens in Black Market, Holds Steady at Official Window on Sept 23

The naira extended its gains against the US dollar on Tuesday, September 23, appreciating in the parallel market while maintaining stability at the Nigerian Foreign Exchange Market (NAFEM).

Currency dealers in Abuja told Economic Confidential that the naira exchanged at ₦1,495/$1 for buying and ₦1,510/$1 for selling, marking a ₦10.33 gain from Monday’s closing rate of ₦1,520/$1.

At the official window, the local currency closed at ₦1,488.9/$1, slightly stronger than Friday’s closing rate of ₦1,498/$1.

Analysts attributed the performance to recent reforms by the Central Bank of Nigeria (CBN) aimed at improving transparency in the FX market, reducing distortions, and narrowing the gap between official and parallel market rates.

They also pointed to the latest inflation figures, which showed headline inflation easing to 20.12% year-on-year in August from 21.88% in July, as a significant factor boosting investor confidence and supporting the naira’s strength across markets.