Naira Holds Firm at ₦1345 as Dollar Gap Widens

(Naira And Dollar. Photo Credit: Nairacompare)

The Nigerian naira is trading at around ₦1,345.94 to one US dollar in the official foreign exchange market as of Thursday, August 27.

This shows the naira has stayed relatively strong near the ₦1,300 level after recent improvements.

But in the parallel market, where people trade unofficially, the dollar costs more.

On Wednesday the dollar was quoted at about ₦1,405, though some Bureau De Change operators were asking between ₦1,398 and ₦1,407 depending on whether you were buying or selling.

That means there is a gap of roughly ₦59 between what the official market and the street markets are charging for dollars.

Anyone buying dollars will pay different rates depending on where they go and how much they need.

The naira has been holding up better recently because Nigeria has more dollars coming in and its foreign reserves hit an 18-year high of $53.34 billion.

On Wednesday the official rate was ₦1,343.59, which shows steady improvement from ₦1,346.98 on Monday.

More dollar supply has eased pressure on the currency, though demand in the parallel market keeps those unofficial rates higher than the official ones.

It is worth noting that parallel-market rates change multiple times throughout the day and are not recognized by the Central Bank of Nigeria as official rates.

The actual rate you get when buying dollars will depend on your bank, which Bureau De Change you use, how much you are buying and where you are located.