The naira opened trading on Tuesday with continued stability against the dollar across both the official and parallel markets.
Latest market data show a sustained convergence between the Nigerian Foreign Exchange Market (NAFEM) rate and street market prices, supported by recent monetary policy adjustments and improved foreign exchange liquidity.
Official NAFEM Rates
In the official market, the naira traded at an average of ₦1,450.92/$ on Tuesday, according to FMDQ data and major trading platforms. The rate underscores a period of sustained stability, with the currency holding within the ₦1,450–₦1,460 band in recent weeks.
Analysts link the steady performance to improved foreign inflows and the US Federal Reserve’s recent shift to a dovish stance. The softer dollar, driven by the Fed’s late-2025 policy adjustments, has given emerging-market currencies, including the naira, room to firm up.
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Parallel Market Rates
In the parallel market, the naira also held firm, with dealers in Lagos and Abuja quoting about ₦1,490/$ on the sell side and ₦1,475/$ for purchases yesterday.
Figures from Aboki Forex and other street-rate trackers show the spread between official and unofficial markets has narrowed to roughly ₦40, a sharp contrast to previous years. Economists say the reduced gap reflects improved market efficiency and fewer opportunities for arbitrage.
Market Outlook
Financial analysts say the naira’s resilience reflects ongoing reforms by the Central Bank of Nigeria and the recent build-up in foreign reserves. They add that expectations of another US Federal Reserve rate cut later this month are strengthening investor sentiment toward Nigerian assets, helping to keep exchange-rate volatility in check as the year winds down.
