The Nigerian naira traded at ₦1,381.68 against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, maintaining relative stability in the official foreign exchange market.
The latest official figures showed the local currency holding within a narrow trading range amid sustained demand for foreign exchange by businesses, importers, exporters and investors.
At the official market, the naira opened at ₦1,381.68 per dollar under Nigeria’s market-driven foreign exchange regime.
In the parallel market, however, the US dollar continued to trade at a premium, with currency dealers quoting an average buying rate of ₦1,408 and a selling rate of ₦1,413. The exact rates varied depending on location, transaction volume and negotiations between buyers and sellers.
The gap between the official and parallel market rates reflects continued pressure on foreign exchange demand outside the formal banking system, where many individuals and businesses turn when unable to access dollars through official channels.
At the prevailing rates, $100 would exchange for about ₦138,168 at the official market, while the same amount would fetch approximately ₦141,300 at the parallel market selling rate.
Analysts attribute movements in the exchange rate to factors including foreign exchange inflows, import demand, crude oil export earnings, diaspora remittances and investor confidence.
The Central Bank of Nigeria (CBN) has continued implementing reforms aimed at improving transparency, boosting liquidity and strengthening price discovery in the foreign exchange market.
The reforms are expected to attract more foreign investment and gradually reduce the gap between the official and parallel market exchange rates, although demand for foreign currency continues to keep parallel market rates higher.
Foreign exchange rates remain subject to market conditions and may fluctuate during the trading day. Individuals and businesses planning foreign exchange transactions are therefore advised to confirm current rates before buying or selling currencies.