The Nigerian naira extended its appreciation against the United States dollar at the official foreign exchange market on Tuesday, according to data released by the Central Bank of Nigeria, while the parallel market rate held steady, reflecting a continued divergence in sentiment across the two trading segments.
The CBN data showed the local currency strengthened to N1,343.32 per dollar on Tuesday, up from N1,349.54 recorded on Monday. The move translates to a day-on-day gain of N6.22. The advance marks the second consecutive session of appreciation at the official window, with the naira posting a cumulative gain of N14.29 over the two-day period, market reports indicate.
In contrast, activity at the parallel market was muted. The naira Traded flat at N1,405 per dollar on Tuesday, unchanged from the rate quoted in the previous session. The lack of movement in the unofficial segment underscores the persistent gap between the official and parallel exchange rates, a feature that has characterized the Nigerian foreign exchange landscape for months.
The mixed performance coincides with a relatively comfortable level of external reserves. The central bank’s latest data puts the country’s foreign reserves at $52.32 billion, a figure that market watchers view as a critical buffer for the apex bank’s intervention capacity in the currency market. The reserve position is often cited as a key determinant of the naira’s near-term trajectory.
The official market’s positive start to the week builds on recent efforts by monetary authorities to enhance liquidity and price discovery in the foreign exchange system. While the parallel market has yet to mirror the official market’s gains, the steady narrowing of the spread in recent sessions suggests a gradual alignment may be taking shape.
Looking ahead, sustained gains at the official window will hinge on consistent foreign exchange inflows and the central bank’s ability to meet legitimate demand without drawing down reserves excessively. Participants will be monitoring the parallel market for any sign of responsiveness that could signal a more unified rate structure in the coming weeks.
