Naira Gains Ground, Appreciates to N1,375/$ in Parallel Market

​LAGOS — The Nigerian currency staged a noticeable recovery at the close of the trading week, strengthening across both the parallel and official foreign exchange markets.

​Data compiled from currency dealers and regulatory filings shows that the naira firmed up to N1,375 per dollar in the parallel market, improving from the N1,380 per dollar rate recorded in the previous session.

​A parallel trend was mirrored in the official window, the Nigerian Foreign Exchange Market (NFEM), where the local currency advanced to N1,349 per dollar.

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​Official Market and CBN Metrics

​According to figures released by the Central Bank of Nigeria (CBN), the indicative exchange rate for the official window shifted downward to N1,349 per dollar, moving up from N1,350.45 per dollar previously. This reflects a steady, incremental gain of N1.45 for the naira within the official trading framework.

​Financial analysts note that stability within the official window continues to provide a psychological anchor for broader market sentiment, helping to curb speculative pressures.

​Narrowing Market Spread

​With the simultaneous movements in both sectors, the premium or margin separating the parallel market rate from the official window compressed further.

• ​Previous Spread: N29.55 per dollar

• ​Current Spread: N29.00 per dollar

​The steady contraction of the gap between the two rates signals a healthier convergence of market forces, diminishing the incentives for arbitrary arbitrage and speculative hoarding outside formal channels.

​Surge in Liquidity and Turnover

​Accompanying the naira’s appreciation was a massive surge in market activity. The value of interbank turnover within the NFEM experienced a dramatic expansion, jumping by 130.8 percent to reach $232.9 billion, up sharply from $100.9 billion in the preceding trading session.

​Market watchers attribute the dramatic surge in turnover to heightened liquidity injections and robust participation by institutional entities, which have collectively boosted trading depth and bolstered confidence in the foreign exchange ecosystem.