The Nigerian naira recorded a marginal appreciation against the U.S. dollar on Tuesday, showing mild strengthening across both the parallel and official foreign exchange channels as market activity increased.
In the informal segment, the currency improved to N1,382 per dollar, up from N1,387 per dollar recorded on Monday, reflecting a small but steady gain in demand-supply balance within the parallel market.
A similar trend was observed in the official window, known as the Nigerian Foreign Exchange Market (NFEM), where the naira appreciated to N1,362 per dollar, compared with N1,367.5 per dollar in the previous session.
Data from the Central Bank of Nigeria (CBN) showed the indicative exchange rate also strengthened by N5.5, reflecting the improved performance in the official market segment.
Gap between markets widens slightly
Despite the parallel and official markets moving in the same direction, the spread between both rates widened marginally. The difference increased to N20 per dollar, compared with N19.5 per dollar recorded on Monday, highlighting persistent segmentation between official and unofficial FX channels.
Market analysts often view this gap as an indicator of underlying liquidity pressures and demand imbalances in the foreign exchange system.
FX turnover rises nearly 20%
Trading activity also picked up during the session. Interbank foreign exchange market turnover rose by 19.4%, reaching $71.6 million, up from $59.93 million the previous day.
The increase in turnover suggests improved participation from market players, even as overall liquidity conditions remain relatively tight by historical standards.
Steady but fragile sentiment
While the naira’s recent appreciation signals short-term stability, traders continue to watch for sustained inflows and policy signals from monetary authorities to determine whether the trend can hold.
For now, the movement reflects a cautious equilibrium—modest gains supported by improved market activity, but still constrained by structural pressures that keep the exchange rate sensitive to shifts in demand.