Naira Recovers at Official, Parallel Markets

The naira recorded gains against the United States dollar at both the official and parallel foreign exchange markets, extending its recent recovery amid improved foreign exchange liquidity and renewed intervention by monetary authorities.

Data from the Nigerian Foreign Exchange Market (NFEM) showed the local currency appreciated at the official window, while traders at the parallel market also reported a stronger naira as demand for the dollar eased. The improvement narrowed the gap between both exchange rates.

Currency dealers attributed the appreciation to increased foreign exchange inflows, tighter market surveillance and improved supply from authorised sources. They also noted that the Central Bank of Nigeria (CBN) has continued efforts to stabilise the foreign exchange market through policy measures aimed at boosting investor confidence.

Financial analysts said the recent gains reflect improving market sentiment but cautioned that sustaining the naira's stability would depend on consistent foreign exchange inflows, stronger export earnings and continued monetary policy reforms. They added that reducing pressure on the foreign exchange market remains critical to preserving the currency's value.

The development comes as the Federal Government and the CBN continue implementing reforms to strengthen the economy, attract foreign investment and improve liquidity in the foreign exchange market. Stakeholders expressed optimism that sustained policy consistency would support further stability in the coming months.