In the informal segment of the market, the naira strengthened to N1,388 per dollar, improving from N1,395 per dollar recorded on Tuesday. The movement signals a modest but steady recovery in demand and supply dynamics within the parallel market.
A similar trend played out in the official window, where the currency also posted gains. The naira appreciated to N1,368.95 per dollar in the Nigerian Foreign Exchange Market (NFEM), compared to N1,373 per dollar the previous trading day.
Data released by the Central Bank of Nigeria (CBN) showed the shift in the indicative exchange rate, which dropped by N4.05, reinforcing the day’s overall positive sentiment for the local currency. In effect, “the indicative exchange rate for the market fell to N1,368.95 per dollar from N1,373 per dollar on Tuesday.”
One notable development from the trading session was the narrowing gap between the official and parallel market rates. The margin reduced slightly to N19.05 per dollar, down from N20 per dollar the previous day, suggesting a gradual convergence between both segments.
Market activity also reflected improved liquidity conditions. Turnover in the interbank foreign exchange market surged significantly by 75.3 percent, rising to $130.6 million from $74.5 million recorded in the previous session. Analysts often interpret such an increase as a sign of stronger participation and improved dollar supply within the system.
Overall, the latest movement points to a cautiously improving FX environment, with both pricing stability and liquidity showing incremental gains.