Naira Holds Strong as Dollar Traders Watch Closely for What Happens Next

Posted by Chinenye on Fri 22nd May, 2026 - tori.ng

Fresh movements in Nigeria’s currency market are drawing major attention after the Naira showed surprising stability against the US Dollar across both official and street exchange markets.

(Dollar to Naira. Photo by NairaCompare)

The Nigerian Naira continued to hold its ground against the US Dollar in the early hours of Friday, May 22, 2026, showing consistent stability in both the official and informal currency markets.

Official Market

In the Nigerian Foreign Exchange Market (NFEM), the Naira began Friday's trading session at 1,370.05 to the Dollar, a figure largely in line with the previous session's closing range of 1,371 to 1,373.

The official window has remained liquid and relatively calm, buoyed by steady interbank activity and deliberate interventions by the Central Bank of Nigeria (CBN), which have helped prevent sudden swings in the morning trading hours.

Parallel Market

In informal markets across Lagos, Abuja, and Kano, the picture was similarly stable. Bureau De Change operators were buying the Dollar at around 1,370 Naira and selling at approximately 1,372 Naira figures that sit remarkably close to the official rate.

This tight alignment between the two market segments represents a meaningful and sustained narrowing of the gap that has historically existed between them, largely driven by speculation.

Outlook

Analysts credit the current stability to a combination of subdued retail demand and a firm monetary policy stance.

With the Monetary Policy Rate held at 26.5 percent, the CBN's tight grip on liquidity is helping to keep the Naira anchored, warding off speculative pressure and providing a degree of predictability that both businesses and investors can plan around.