The Nigerian Naira started Thursday on a stable note, trading at ₦1,385.46/$ in early deals and slightly improving to ₦1,384.39/$. Traders say the market is taking a cautious approach after a bumpy start to the week.
Official Market Moves
At the official Nigerian Foreign Exchange Market (NFEM), the Naira recorded modest gains. After dipping earlier in the week, the currency is slowly bouncing back.
Experts link the stability to higher foreign exchange inflows. Recent data shows Nigeria received about $4.4 billion in February, up 45% from the previous month, with some of that momentum carrying into March.
Foreign investors chasing higher returns are also helping the Naira maintain its position in the official market.
Parallel Market Trends
In the parallel market (black market), the Dollar traded at roughly ₦1,415 for selling and ₦1,405 for buying. The gap between official and parallel rates is about ₦31, narrower than usual, reflecting the Central Bank of Nigeria’s ongoing efforts to unify exchange rates.
What’s Driving the Market?
A few key factors are shaping the Naira’s performance right now:
- New remittance rules require diaspora funds to flow through designated Naira accounts, boosting transparency and FX supply.
- External reserves have dipped to $49.6 billion, continuing a six-session decline due to global uncertainties.
- Inflation control remains a priority for the CBN, even as headline inflation eases to 15.1%.
- Gold reserves rising to $3.5 billion provide a cushion for the economy, giving some confidence to investors.
Looking Ahead
Traders expect the Naira to hover between ₦1,380 and ₦1,420 in the coming days. While falling reserves are a concern, ongoing FX inflows and stable policies suggest the currency can hold its ground for now.
