Naira exchange rate gain sees currency rise to N1,390 per dollar in parallel market as spread with official rate narrows to N35

The naira recorded a Naira exchange rate gain on Monday, appreciating to N1,390 per dollar in the parallel market and narrowing the spread with the official foreign exchange window to N35.

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The local currency strengthened by N30 from N1,420 quoted on Friday, representing a 2.16 per cent appreciation within one trading session.

Street traders in Lagos confirmed improved dollar availability, citing renewed liquidity in the informal segment.

Abbas Yishau, a currency trader in the Ogba area of Lagos, attributed the rally to increased dollar supply.

Abbas Yishau said there was sufficient United States currency in circulation among parallel market operators, driving the sharp rebound.

The development follows recent interventions by the Central Bank of Nigeria aimed at stabilising the foreign exchange market and reducing volatility.

The apex bank reopened the retail foreign exchange window for Bureau De Change operators, allowing them to access fresh supplies through authorised dealer banks.

With the latest movement, the spread between the parallel and official markets has narrowed significantly from N92 recorded last Wednesday and N65 reported later in the week.

Analysts view the tighter convergence as a positive signal for economic transparency and price stability.

A wide disparity between official and informal exchange rates has historically fuelled speculation and arbitrage.

Market observers say closer alignment reduces uncertainty for businesses and strengthens investor confidence.

At the official window, however, performance was mixed. Data from the Central Bank of Nigeria showed the naira slipped by N1.76 at the Nigerian Foreign Exchange Market on Friday, closing at N1,355.42 compared with N1,353.66 the previous day.

The marginal depreciation represented a 0.13 per cent decline.

Despite the slight dip at the official segment, analysts note that the broader trend still points towards gradual convergence across both markets.

Policy adjustments have focused on boosting supply, discouraging hoarding and restoring confidence in the system.

According to a report by BusinessDay, regulatory efforts are designed to strengthen oversight of foreign exchange transactions while improving dollar liquidity in the retail segment.

Currency stability remains critical to Nigeria’s inflation outlook, import costs and fiscal planning.

Economists argue that a more predictable exchange rate environment could ease pressure on manufacturers reliant on imported inputs and help moderate consumer prices.

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For now, the latest Naira exchange rate gain offers cautious optimism, with traders and businesses watching closely to see whether sustained policy support can maintain momentum in the days ahead.