Naira Holds Firm as Dollar Traders Watch Next Big Move

(Dollar to Naira. Photo by Nairacompare)

The Nigerian naira held broadly steady against the US dollar across both the official and parallel markets, as traders kept a close eye on liquidity conditions and demand trends.

At the official Nigerian Foreign Exchange Market (NFEM), the naira traded at roughly ₦1,361 to the dollar, with the week's transactions falling within a tight ₦1,359–₦1,365 band.

The currency had shown modest gains in early June, buoyed by better dollar supply and ongoing Central Bank of Nigeria interventions to support market liquidity.

On the parallel market, the dollar changed hands at between ₦1,390 and ₦1,405, depending on location and deal size, with buying rates generally between ₦1,380 and ₦1,395.

Notably, the gap between the two markets has narrowed compared to previous months, a development attributed to sustained efforts to improve forex transparency and liquidity.

Currency dealers noted that foreign portfolio inflows, crude oil revenues, and CBN policy decisions will remain the key drivers of the naira's performance in the weeks ahead.