The Nigerian naira posted a modest gain against the United States dollar on Monday, closing at ₦1,357.26/$1 at the official foreign exchange market, while the dollar traded at approximately ₦1,398/$1 in the parallel market.
Recent trading data showed the local currency maintaining relative stability across both the official and unofficial markets, despite ongoing concerns over foreign exchange demand and liquidity.
At the official market, the naira strengthened slightly compared to its position at the beginning of June, continuing the gradual recovery seen in recent trading sessions.
In the parallel market, Bureau De Change operators quoted the dollar at around ₦1,388 for buying and ₦1,398 for selling on June 8.
Narrowing exchange rate gap
The difference between the official and parallel market rates remained significantly lower than the wide gaps recorded in previous years, a trend many market observers believe reflects improving efficiency within Nigeria’s foreign exchange system.
Financial analysts noted that recent policy reforms and efforts to improve market liquidity have helped bring rates in both markets closer together, reducing opportunities for major price discrepancies.
Data from the official trading window also indicated that the naira gained nearly ₦4 against the dollar compared to earlier trading levels, suggesting a slight improvement in market confidence.
Outlook remains tied to forex inflows
Experts say the naira’s performance in the coming weeks will largely depend on the availability of foreign exchange in the economy.
Key factors expected to influence exchange rate movements include crude oil earnings, foreign investment inflows, diaspora remittances, and overall market liquidity.
Currency traders, however, cautioned that exchange rates may vary depending on location, transaction volume, and prevailing demand for foreign currency.
Based on the latest rates, $100 was worth approximately ₦135,726 at the official market and about ₦139,800 in the parallel market.
