Trading in the Nigerian Foreign Exchange Market (NFEM) opened with the Naira quoted at ₦1,361.97 to the dollar. As activity picked up through the early hours, the currency strengthened steadily, sliding past key resistance levels to trade around ₦1,356.10 by mid-morning. Latest indications from the official window show the dollar exchanging at approximately ₦1,355.73, marking a clear improvement from the previous session.
Market watchers say the movement underscores growing confidence in the Central Bank of Nigeria’s exchange rate management framework. The continued use of the Electronic Foreign Exchange Matching System has helped to improve transparency and reduce pricing distortions, while the retention of the Monetary Policy Rate at 27.00 per cent continues to draw portfolio inflows. Together, these factors have provided a cushion for the Naira and reinforced its ability to test stronger support levels below the ₦1,360 mark.
A similar tone was evident in the parallel market, where the Naira also appreciated, though at weaker levels compared with the official rate. In major commercial centres including Lagos, Abuja and Port Harcourt, Bureau De Change operators were quoting the dollar within the ₦1,435 to ₦1,450 range. While still higher than the NFEM rate, this spread has narrowed noticeably over the past week.
Currency traders attribute the convergence to calmer market sentiment and improved dollar supply for routine needs such as travel allowances and retail transactions. Reports from Lagos indicate that demand is being met without the usual surge in speculative buying, a pattern that often emerges at the beginning of the month. The absence of panic-driven demand is being interpreted as a sign that participants are increasingly comfortable with the current stability of the Naira.
In practical terms, the day’s trading shows a currency that opened around ₦1,361.97 in the official market and strengthened to roughly ₦1,355.73 as the session progressed, while the parallel market hovered in the mid-₦1,400s. Analysts say attention will now turn to whether the Naira can sustain trading near the ₦1,355 level through the rest of the day.
The broader outlook for the week remains positive, with expectations that the local currency will hold its ground provided external reserves stay healthy and corporate demand continues to be channelled efficiently through the official market.