The naira on Tuesday traded with mixed performance against the United States dollar across Nigeria’s official and parallel foreign exchange markets, reflecting continued pressure on the local currency amid demand-supply imbalances.
At the official market, the naira exchanged within a narrow range as transactions were concluded on the Nigerian Autonomous Foreign Exchange Market (NAFEM), supported by periodic interventions and ongoing reforms by the Central Bank of Nigeria (CBN). Market operators said improved transparency in trading has helped reduce sharp volatility, although demand for dollars remains strong.
Meanwhile, at the parallel market, commonly referred to as the black market, the naira weakened slightly as dollar scarcity persisted. Currency traders attributed the pressure to increased demand from importers, travelers, and individuals seeking foreign exchange for school fees and medical expenses abroad.
Financial analysts note that while recent policy measures have brought relative stability compared to previous months, sustained improvement in the naira’s value will depend on increased foreign exchange inflows, stronger export earnings, and renewed investor confidence.
The CBN has repeatedly warned against patronage of the parallel market, urging individuals and businesses to access foreign exchange through official channels, as it continues efforts to unify exchange rates and stabilise the currency.
As Nigeria navigates ongoing economic reforms, market watchers say movements in global oil prices, diaspora remittances, and foreign investment flows will remain key factors influencing the naira’s performance in the coming weeks.
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