Naira stability against dollar continues as CBN interventions and retail dollar supply curb market volatility and support steady exchange rates

Nigerian naira maintained a stable outlook against the United States Dollar during Friday morning trading, as the market entered the final session of the week.

Also read: CBN Policy Sparks Optimistic Naira Outlook

In the Nigerian Foreign Exchange Market (NFEM), the naira opened at approximately 1,356.33 per dollar and experienced minor intraday fluctuations, settling at a mid-morning average of 1,355.58.

Analysts view the range of 1,350 to 1,360 as a sign of relative stability in the official market.

Market observers attributed the steady performance to the effective functioning of the Electronic Foreign Exchange Matching System, which aligns dollar demand with available supply.

The Central Bank of Nigeria’s (CBN) renewed engagement with Bureau De Change (BDC) operators to facilitate retail transactions has also helped improve liquidity and prevent abrupt price movements.

In the parallel market, the naira mirrored official market stability, trading between 1,425 and 1,440 per dollar in commercial hubs like Lagos and Abuja.

Traders noted that the typical “weekend effect,” which often drives sudden price spikes, was muted, thanks to improved dollar availability through official channels.

The narrower gap between official and parallel market rates has provided greater predictability for small-scale importers and retail buyers.

Market participants say this stability enhances confidence and curbs speculative buying.

Also read: CBN Approves BDC Access to FX Market With Limits

As the week closes, the naira appears positioned to sustain its momentum into mid-February, with analysts closely monitoring closing figures to gauge the currency’s strength ahead of Monday’s trading open.