The Nigerian naira opened the week with a notable gain at the official foreign exchange window, reversing the previous session’s decline. Data from the Central Bank of Nigeria (CBN) indicated the local currency strengthened to N1,360.14 per dollar on Monday, compared with N1,365.69 at Friday’s close, representing an appreciation of N5.55.
The improvement at the official market contrasted with the parallel segment, where the naira held steady at N1,430 per dollar, unchanged from the end of the prior week. The persistent gap between the two windows underscores the ongoing fragmentation in the country’s foreign exchange landscape.
CBN figures also showed the nation’s external reserves positioned at $52.06 billion, providing a buffer for import cover and market intervention capacity. The reserve level reflects the apex bank’s accumulated inflows from crude proceeds, remittances, and multilateral disbursements.
Friday’s session had seen the naira weaken across both segments, pressured by renewed dollar demand from importers and portfolio investors adjusting positions. Monday’s recovery suggests a return of liquidity, possibly supported by CBN supply interventions and moderating retail demand.
Market participants are monitoring whether the official window can sustain momentum amid structural dollar shortages. The parallel market’s stability at N1,430 may indicate a temporary equilibrium, though analysts caution that any shift in sentiment or supply dynamics could quickly widen the spread again.
The CBN has maintained its commitment to a unified exchange rate regime, but convergence remains elusive. Persistent arbitrage opportunities between the windows continue to distort price discovery and incentivise round-tripping.
Next week’s trading direction will likely hinge on the volume of official interventions, inflow trends from non-oil exports, and the pace of diaspora remittances through formal channels.
