Naira exchange rate holds steady against the Dollar as official and parallel markets respond to midweek liquidity pressures in Nigeria

The Naira showed resilience in Nigeria’s foreign exchange markets on Wednesday as both official and parallel channels navigated midweek liquidity pressures.

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Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) indicates the Naira trading at an average of ₦1,345.45 per United States Dollar, after briefly dipping to ₦1,343.76 earlier in the day.

Analysts attribute the relative stability in the official window to consistent interventions by the Central Bank of Nigeria and a steady flow of export proceeds into the market.

Despite the cautious trading, corporate buyers and investors continue to monitor intraday fluctuations closely, particularly for hedging purposes.

In the parallel, or black market, the Dollar maintained a higher premium, with Bureau De Change operators in Lagos, Abuja, and Kano reporting buying rates around ₦1,480 and selling rates between ₦1,495 and ₦1,510.

The persistent arbitrage gap reflects retail demand for school fees, travel allowances, and small-scale imports that fall outside official allocations.

Economists say the current exchange rate trends offer cautious optimism.

The Naira has avoided sharp devaluations seen in previous cycles, though inflationary pressures continue to influence pricing in informal channels.

Experts suggest that steady foreign exchange supply through official channels could reduce pressure on parallel markets by week’s end.

Also read: Naira Records Strong Gain as FX Gap Narrows

For now, businesses and individual traders are advised to track official rates closely to inform financial decisions and manage exposure to potential shifts in the Naira’s value.