Naira Mid-Week Update: Official Rate Holds at N1,423/$ While Parallel Market Hits N1,486/$
The Nigerian naira maintained relative stability at the official foreign exchange market mid-week, closing at N1,423/$ on Wednesday. This follows a week of mixed performance at the official window, contrasting sharply with persistent weakness in the parallel market, where the currency touched N1,486/$. Data from the Central Bank of Nigeria (CBN) and Nairametrics highlights the continuing pressures outside regulated trading windows.
Despite slight improvements, the gap between the official and parallel market remains significant. Analysts note that the divergence reflects ongoing structural constraints in Nigeria’s foreign exchange market, even as reforms by the CBN aim to narrow the difference. The official market rates showed intermittent gains over the past week, starting at N1,425/$ and closing at N1,417.95/$ last week, demonstrating the effectiveness of targeted interventions.
In the parallel market, however, demand remains intense. The naira opened the week at N1,483/$ and edged higher to N1,486/$ mid-week. While the gap between official and parallel markets narrowed to N63 from N73 last week, it remains the widest margin observed since February 2025. Year-to-date, the naira began 2026 at N1,428/$, indicating ongoing pressure despite temporary stabilization at official windows.
Global currency trends also play a role in shaping Nigeria’s forex market. The U.S. dollar gained against major currencies after former President Donald Trump withdrew threats to impose tariffs on several NATO countries, easing earlier investor fears. The dollar remained steady at $1.1685 per euro, while the Australian dollar reached a 15-month high following positive employment data, influencing forex dynamics worldwide.
Experts say sustained improvement in the naira’s value will depend on stronger foreign exchange inflows, higher investor confidence, and a reduced reliance on the parallel market. While the official market shows signs of resilience, pressures in the informal FX window continue to dominate trading patterns, emphasizing the need for structural reforms to stabilize Nigeria’s currency in the long term.
source: nairametrics