Naira mixed across markets as official window dips, parallel market strengthens

The Nigerian naira recorded mixed performance across foreign exchange markets on Wednesday, weakening slightly at the official window while gaining ground in the parallel market against major global currencies.

Data from the Central Bank of Nigeria (CBN) showed that the naira closed at N1,338.10/$1 at the official window, compared to N1,335.95/$1 on Tuesday. This represents a depreciation of N2.15 against the U.S. dollar in the formal market segment.

However, in the parallel market, the local currency strengthened significantly, gaining N15 to close at N1,365/$1, compared with N1,380/$1 recorded the previous day.

The naira also posted mixed results against other key international currencies in the informal market:

It appreciated by N25 against the British pound to trade at N1,920/£1, down from N1,945/£1.

It remained unchanged against the Canadian dollar at N1,100/CA$1.

It depreciated by N40 against the euro, closing at N1,680/€1 compared to N1,640/€1 previously.

Foreign exchange analysts say the slight depreciation at the official window may reflect routine demand pressures from importers and corporate players, while improved liquidity in the parallel market likely drove the currency’s gains there.

“The divergence between the official and parallel markets often reflects short-term liquidity adjustments,” said a Lagos-based currency analyst. “Improved dollar supply in the informal segment can temporarily narrow the gap, especially when speculative demand cools.”

Another economist noted that recent interventions and policy measures by the CBN may be contributing to relative stability in the broader FX market.

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“The official market tends to be more sensitive to institutional demand and settlement flows, while the parallel market reacts quickly to shifts in supply from remittances, Bureau de Change operators, and retail transactions,” the analyst explained.

Market watchers say exchange rate stability remains tied to several factors, including foreign portfolio inflows, oil export earnings, and monetary policy direction. Sustained appreciation, they argue, will depend on consistent foreign exchange supply and improved confidence in Nigeria’s macroeconomic framework.

“Short-term gains are encouraging, but structural stability requires steady dollar inflows and disciplined fiscal management,” an Abuja-based financial strategist added.

For now, the naira’s mixed performance underscores the ongoing balancing act between demand pressures and liquidity improvements in Nigeria’s evolving foreign exchange landscape.