Naira holds steady against the dollar as CBN reforms and improved FX liquidity support calm trading in official and parallel markets

The Nigerian naira opened Wednesday on a calm note, sustaining stability against the United States dollar amid early trading at the Nigerian Foreign Exchange Market (NFEM).

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At the official market, the naira exchanged at around ₦1,387.42 to the dollar at the opening and remained largely steady through mid-morning, reaching ₦1,388.15.

Analysts attribute this stability to Central Bank of Nigeria (CBN) reforms, particularly the Electronic Foreign Exchange Matching System (EFEMS), which has enhanced transparency and improved price discovery.

“The current exchange rate reflects the CBN’s success in managing corporate demand for foreign exchange while steadily clearing long-standing FX backlogs,” noted a market analyst.

The parallel market also reflected calmer trading conditions, with the dollar quoted between ₦1,460 and ₦1,475 in commercial hubs such as Lagos and Abuja.

Although the gap between official and informal rates persists, it has narrowed significantly from the divergences seen at the end of 2025.

Moderate demand, largely from personal travel and small-scale transactions, combined with sufficient supply, has prevented sudden price spikes.

Analysts suggest that continued crude oil stability and steady foreign portfolio inflows could maintain the naira’s range-bound performance through the first quarter of 2026.

Also read: Naira Strengthens to N1,419 as Dollar Weakens Globally

Market participants are expected to watch closing rates closely for guidance on the week’s trading direction.