Naira Holds Steady as Dollar Gap Widens Between Official and Parallel Markets

(Dollar to Naira. Photo Credit: Nairacompare)

The naira held relatively stable against the United States dollar in the official foreign exchange market on Thursday, with a persistent divergence between official and parallel market rates.

The Central Bank of Nigeria reported the official NFEM rate at approximately ₦1,362.55 per dollar, compared with ₦1,364.83 earlier in the week, indicating the naira’s continued trading within the ₦1,360 range in recent sessions.

In the parallel market, the dollar traded at roughly ₦1,425 for sales and ₦1,410 for purchases on Thursday morning.

The spread between the official NFEM selling rate and parallel market quotations measured approximately ₦62 per dollar, reflecting the continued premium incurred by individuals and businesses sourcing foreign exchange outside the regulated system.

Market analysis attributed the stability in the official window to improved liquidity conditions and sustained intervention by monetary authorities, whilst demand pressure from importers, travellers and retail users continued to support elevated rates in the informal sector.

The NFEM rate derives from a volume-weighted average of official market transactions, establishing it as the benchmark for regulated foreign exchange dealings in Nigeria.

The applicable rate depends on transaction channel: banks and authorised dealers utilise the official NFEM rate, whilst street traders and some bureau de change operators transact at parallel market rates.