Naira Gains Marginally As FX Turnover Surges
Nigeria’s currency posted a marginal gain against the US dollar at the official window, supported by a sharp rise in foreign exchange turnover and improved liquidity conditions, according to latest market data.
Figures released by the Central Bank of Nigeria show the naira appreciated by 0.09 per cent to close at N1,379.46 per dollar, compared to N1,380.7066 recorded a day earlier at the Nigerian Foreign Exchange Market.
The modest recovery follows sustained pressure on the local currency in recent sessions, with improved dollar supply helping to ease demand constraints at the official window. Market data indicates that liquidity levels rose above typical international payment thresholds, providing some relief to participants navigating tight FX conditions.
Trading activity on the official platform reflected volatility within the session, with the exchange rate reaching an intraday high of N1,386 and strengthening to an intraday low of N1,365 per dollar. The movement was attributed to foreign exchange injections into the market, which temporarily boosted dollar availability.
Further data from the apex bank showed that interbank turnover rose significantly, with transactions totalling $249.905 million across 180 deals. The increase in trading volume signals improved participation among financial institutions and suggests a degree of restored confidence in the market.
Higher liquidity also contributed to narrower bid-ask spreads across transactions, an indication of more efficient price matching between buyers and sellers. Analysts typically interpret such conditions as a sign of short-term market stability, although underlying structural pressures may persist.
At the parallel market, the naira was quoted at N1,395 per dollar, reflecting a relatively stable spread compared to the official rate. The gap between both segments of the market remains a key indicator monitored by policymakers assessing exchange rate convergence.
Market trends suggest that while liquidity conditions have improved, the pace of appreciation remains limited. The marginal gain recorded points to a price discovery phase where participants appear to have settled within the N1,300 band, balancing demand and supply expectations.
Recent policy actions by monetary authorities have focused on improving transparency and boosting FX inflows, though the sustainability of current levels will depend on broader macroeconomic factors, including external reserves, capital flows, and global dollar strength.