The Nigerian naira appreciated further against the United States dollar at the Nigerian Foreign Exchange Market (NFEM) on Tuesday, closing at ₦1,335.95 per dollar as improved liquidity conditions supported the local currency.
Data from the Central Bank of Nigeria showed that the official spot rate strengthened by ₦8.05 compared to the previous session’s ₦1,344.00 per dollar close. During intraday trading, the currency fluctuated within a band of ₦1,318.00 and ₦1,344.00 per dollar before settling stronger.
Market participants attribute the appreciation to balanced demand-supply dynamics, supported by consistent foreign exchange inflows and stabilizing macroeconomic indicators.
Parallel Market Mirrors Official Market Gains
The strengthening trend extended to the parallel market, where the naira gained approximately 0.87 percent to trade at ₦1,371 per dollar. Dealers linked the movement to continued liquidity injections and targeted foreign exchange sales, including an estimated $150,000 allocated to informal sector operators.
The narrowing premium between the official and parallel markets reflects sustained policy measures aimed at harmonizing exchange rate segments and reducing speculative pressure.
External Reserves Build to $47.80 Billion
Nigeria’s external reserves rose to $47.80 billion, reflecting a $135.75 million increase in the latest reporting cycle. The accumulation has been bolstered by stronger oil receipts and improved capital inflows amid enhanced market stability. Analysts note that a healthier reserve buffer enhances the CBN’s capacity to defend the naira and manage exchange rate volatility.
Anchoria Securities Limited stated that prevailing supply-side conditions, reinforced by supportive monetary policies, are likely to sustain currency stability in the near term. The firm added that improving confidence metrics and reserve strength should continue anchoring market expectations.
Outlook for the Naira
Currency traders expect the naira to remain largely influenced by prevailing demand and supply fundamentals. With external reserves trending upward and oil-linked inflows steadying, short-term volatility appears contained.
Policy consistency and transparent FX interventions have contributed to improved sentiment in both official and informal market segments. If reserve accretion continues and foreign exchange inflows remain steady, analysts believe the naira could maintain its upward trajectory in the coming sessions.
 on Tuesday, closing at ₦1,335.95 per dollar as improved liquidity conditions supported the local currency.){kind=link}