The Nigerian naira opened the new trading week at about ₦1,362.55 per US dollar in the official market, while the parallel market quoted the dollar at around ₦1,425 on Monday.
The official rate, published through the Central Bank of Nigeria’s exchange rate platform, remains the benchmark for transactions conducted through the formal foreign exchange market.
The naira’s relatively stable opening comes as traders continue to monitor foreign exchange liquidity, demand for dollars and the Central Bank of Nigeria’s interventions in the market.
Naira-dollar exchange rate
In the parallel market, commonly referred to as the black market, currency dealers in Lagos and other major trading centres quoted the dollar at approximately ₦1,425 for selling and ₦1,410 for buying.
Based on the official NFEM rate of ₦1,362.55 and the parallel market selling rate of ₦1,425, the difference between both markets stood at about ₦62.45 per dollar.
The spread remains broadly in line with recent trading sessions, indicating that the naira has maintained relative stability across the two markets.
The CBN explains that the Nigerian Foreign Exchange Market rate is determined using the volume-weighted average of transactions completed during each trading session.
Recent market data also showed the official exchange rate moving within a relatively narrow range of around ₦1,362 to ₦1,364 per dollar.
Market outlook
Market watchers have attributed the recent stability partly to improved foreign exchange liquidity and efforts by the Central Bank to manage demand pressures in the official market.
Reuters also reported that the naira had recently traded around the ₦1,360 level in the official market, while street-market rates remained close to ₦1,425 per dollar.
Dealers are expected to continue monitoring dollar supply and demand as the new trading week progresses.
For individuals and businesses looking to buy or sell dollars, the actual rate offered may differ depending on the bank, bureau de change, transaction size, payment method and location.
The NFEM rate applies to transactions conducted through authorised dealers within the formal foreign exchange market.
The parallel market rate, meanwhile, reflects cash transactions conducted outside the official foreign exchange window.