Naira records mixed performance across FX markets

The naira posted a mixed performance on Monday, appreciating slightly in the official foreign exchange market while weakening marginally in the parallel market, reflecting persistent demand pressures and liquidity dynamics in the country’s FX space.

At the Nigerian Foreign Exchange Market (NFEM), the local currency gained modestly against the US dollar during trading. 

The naira opened at about ₦1,426.69 per dollar and strengthened to around ₦1,423.82 per dollar by mid-session, indicating a slight appreciation. 

Market analysts attributed the improvement to improved dollar supply and ongoing efforts by the Central Bank of Nigeria (CBN) to stabilise the market through liquidity management and market reforms.

In contrast, the naira faced mild pressure in the parallel market, where it exchanged between ₦1,500 and ₦1,505 per dollar, according to market operators. 

The depreciation was linked to increased demand from importers, travelers, and small businesses seeking foreign exchange outside the official window.

Currency traders noted that the persistent gap between the official and parallel market rates continues to reflect structural challenges in forex supply, despite recent signs of stability at the official market.

Looking ahead, analysts expect the naira’s performance to remain largely influenced by foreign inflows, oil revenue receipts, and the consistency of CBN interventions. 

Rising business activity in January is also expected to shape demand patterns in the days ahead.