The naira strengthened to ₦1,600 per US dollar in Nigeria’s parallel (black) market yesterday, up from ₦1,605 at the close of last week. Currency traders attributed the improvement to slightly higher dollar inflows from remittances and exporters taking advantage of improved liquidity.
Despite persistent demand pressures, a handful of bureau de change operators reported increased willingness to sell at marginally better rates, narrowing the gap with official windows.
On the official Nigerian Foreign Exchange Market (NFEM), however, the naira slipped to ₦1,550 per dollar from ₦1,547 last week, according to data released by the Central Bank of Nigeria.
This ₦3 depreciation reflects ongoing pressures from importers seeking foreign currency for essential goods and raw materials, even as the CBN continues to auction dollars through its various intervention schemes.
As a result of these opposing movements, the spread between the parallel-market rate and the NFEM rate narrowed to ₦50 per dollar, down from ₦58 on Friday.
Market analysts suggest that the narrowing margin may encourage some arbitrage activity, but they warn that unless the Central Bank can boost dollar supply through higher oil revenues or increased foreign portfolio inflows, these modest gains in the black market may prove short-lived.
Looking ahead, stability will hinge on consistent FX availability and clearer policy signals from monetary authorities.