Naira Holds Firm at ₦1,423/$ Officially as Parallel Hits ₦1,486/$

The naira recorded a mixed performance mid-week, maintaining relative stability at the official foreign exchange window while continuing to weaken in the parallel market.

Data from market trackers showed that the currency traded within a narrow band at the Nigerian Foreign Exchange Market, reflecting marginal day-to-day movements and intermittent support from regulatory interventions.

In contrast, the parallel market remained under pressure, with rates edging higher and keeping the gap between official and unofficial markets wide, despite a slight narrowing compared to the previous week.

Analysts say the divergence highlights ongoing structural challenges in Nigeria’s foreign exchange framework, including persistent demand for dollars, limited supply outside official channels and confidence issues within the informal market.

While the official market has benefited from reforms aimed at improving transparency and liquidity, experts caution that sustained convergence will require deeper structural adjustments, including improved export earnings, stronger capital inflows and reduced reliance on imports.

Market observers note that although short-term stability has been achieved at the official window, pressure in the parallel market continues to signal underlying imbalances that could weigh on broader currency stability if left unresolved.