The Nigerian naira maintained relative stability against the United States dollar on Wednesday, July 1, 2026, with the currency exchanging at ₦1,380.17 per dollar in the official market and around ₦1,400 per dollar in the parallel market, as the gap between both markets remained narrow.
Figures from the Nigerian Foreign Exchange Market (NFEM) showed the official exchange rate closed at approximately ₦1,380.17 to the US dollar.
The performance reflects sustained stability in the official market, supported by the Central Bank of Nigeria’s measures aimed at improving foreign exchange liquidity and market transparency.
Official market maintains steady performance
The Central Bank of Nigeria determines the NFEM exchange rate using a volume-weighted average of transactions completed in the official foreign exchange market.
This rate serves as the benchmark for government dealings and other formal financial transactions.
Market observers say the continued stability in the official market indicates the impact of ongoing reforms designed to strengthen confidence in Nigeria’s foreign exchange system.
Black market rates remain close to official rate
In the parallel market, commonly referred to as the black market, the US dollar traded at about ₦1,390 for buying and around ₦1,400 for selling, although prices varied depending on location and individual currency dealers.
Analysts noted that the relatively small difference between the official and parallel market rates suggests improved foreign exchange availability through authorised channels.
However, demand from importers, travellers and other users who cannot easily access official foreign exchange continues to sustain activity in the informal market.
Unlike the official market, exchange rates in the parallel market are not regulated by the Central Bank of Nigeria and may differ across cities, Bureau De Change operators and street traders.
Despite the improvement in market stability, the official NFEM rate remains the recognised benchmark for formal transactions, while the parallel market continues to provide an alternative source of foreign exchange for individuals and businesses.