By Boluwatife Oshadiya | June 3, 2026
Key Points
- Naira appreciated to ₦1,361.05 per dollar at the official market on Tuesday
- Interbank FX turnover declined to $169.82 million from $177.93 million
- Parallel market rate weakened to ₦1,380 per dollar amid rising informal demand
Main Story
The naira strengthened against the United States dollar at the official foreign exchange market on Tuesday despite a decline in interbank trading activity, supported by sustained FX liquidity and improved market confidence.
Data released by the Central Bank of Nigeria (CBN) showed that the local currency closed at ₦1,361.05 per dollar at the Nigerian Foreign Exchange Market (NFEM), compared with previous levels, as demand pressures eased during the trading session.
The official exchange rate traded within an intraday range of ₦1,359.50 and ₦1,365 per dollar. Meanwhile, total FX turnover at the interbank market declined to $169.82 million across 168 deals, down from $177.93 million recorded in the previous session.
At the parallel market, however, the naira weakened to ₦1,380 per dollar as demand from informal market participants increased.
Analysts attributed the resilience of the local currency to healthy foreign exchange reserves, improved inflows from crude oil exports and continued foreign portfolio investment interest in Nigerian fixed-income assets.
Global market developments also provided support for emerging market currencies. International investors continued to monitor ongoing diplomatic engagements between the United States and Iran, with expectations that any agreement could help stabilise global energy markets.
“Robust FX liquidity at the Nigerian Foreign Exchange Market supported the naira’s appreciation during Tuesday’s trading session,” market analysts noted.
What’s Being Said
“The outlook for the naira remains positive, supported by external reserves and sustained foreign exchange inflows from hydrocarbon exports,” Broadstreet analysts said.
Independent currency traders said demand conditions in the parallel market remain elevated despite improvements in official market liquidity.
What’s Next
- Investors will monitor CBN interventions and FX liquidity levels in the coming weeks.
- Oil price movements and export earnings will remain critical to the naira’s performance.
- Markets will continue tracking developments in global energy markets and US-Iran negotiations for potential impact on foreign exchange flows.
Bottom Line
The Bottom Line: The naira’s appreciation at the official market suggests that liquidity conditions remain supportive despite lower trading volumes. However, the divergence between official and parallel market rates indicates that demand pressures in the informal market have not fully eased.
