A largely stable trading pattern defined Nigeria’s foreign-exchange landscape heading into the weekend, with only mild movement observed at the official window and virtually no change in street-market quotes. Dealers described a market that has settled into a tight band, supported by a mix of central-bank involvement, modest foreign-portfolio inflows and steadier oil-related dollar supply.
At the Nigerian Foreign Exchange Market (NFEM), the naira continued to hover around the mid-₦1,440s to the US dollar. Volume-weighted averages placed trades roughly between ₦1,441 and ₦1,444 per dollar, reflecting a marginal weakening compared with the previous session. According to Central Bank of Nigeria (CBN) data, the currency closed Friday at ₦1,442.43, slipping from ₦1,441.44 the day before — a day-on-day decline of ₦0.99.
The parallel market showed little reaction, with traders in major cities quoting the dollar at ₦1,450 for purchases and ₦1,460 for sales, essentially the same band seen throughout the week. Some market participants said the relative calm in cash transactions indicates that neither demand pressures nor speculative flows were particularly intense.
Drivers Behind the Trading Range
Analysts attribute the narrow spread between trades to a confluence of supportive factors. Continued CBN presence in the official market, combined with foreign investors’ renewed interest in local debt instruments, has provided a steady supply of dollars. Rising oil receipts — after months of volatility — have further eased the strains that earlier triggered sharp intraday swings.
Monetary-policy adjustments earlier in the year, alongside a more settled global risk environment, are also cited as reasons the currency has avoided the severe dislocation seen in previous quarters.
Premium Between Market Segments
The difference between the official NFEM rate and the parallel-market quote remained in the ₦15–₦25 range — a margin analysts expect to persist unless the CBN expands its spot-dollar supply or liquidity dries up in the street market. Import-dependent businesses and corporate treasurers continue to track both markets carefully before committing to large FX obligations.
What Traders Are Watching
Market watchers say attention now shifts to incoming oil-sector dollar flows, any scheduled CBN interventions, and the scale of foreign-portfolio activity in local bonds and bills. Broader macroeconomic signals — particularly interest-rate decisions and monthly reserve updates — could either help narrow the current gap or widen it further.
Despite the naira’s soft close on Friday, Nigeria’s external reserves have continued their upward momentum, rising to $43.54 billion by Thursday from $43.35 billion the week prior. For now, the currency’s week-long performance reflects mild pressure at the official window but relative calm across both segments of the FX market.