The Nigerian Naira extended its recent strengthening trend in the official foreign exchange market on Friday, while remaining steady in the parallel market, highlighting a persistent divergence between the two rates.
Data from the Central Bank of Nigeria (CBN) showed the official exchange rate improved to N1,366.23 per U.S. dollar, up from N1,371.51 the previous day. This represents a daily appreciation of N5.28. The gain marks the continuation of a rally that began on Tuesday, March 10, during which the local currency has cumulatively strengthened by N35.17 against the dollar in the official window.
Conversely, the parallel market, also known as the black market, held steady at N1,440 per dollar on Friday, unchanged from Thursday’s rate. Multiple Bureau de Change (BDC) operators, however, noted a decline of N20 in the parallel rate over the preceding four days, suggesting some underlying pressure in that segment.
The official market’s sustained recovery coincides with the country’s external reserves standing at $50.03 billion as of March 11, 2026, a key fundament that supports the CBN’s foreign exchange management. The gap between the official rate (approximately N1,366) and the parallel rate (N1,440) remains significant, reflecting ongoing market segmentation and differing supply dynamics.
The CBN’s continued interventions in the official market appear to be bolstering confidence and driving the naira’s appreciation there. However, the relative stagnation and recent软化 in the parallel market indicate that broader currency stability may depend on further narrowing the rate disparity and improving dollar liquidity across all segments. The direction of both markets will be closely watched for signs of convergence.
