Naira Faces Fresh Pressure as Dollar Hits ₦1,410 on the Black Market

(Dollar to Naira. Photo by Naiarcompare)

The Nigerian naira opened trading on Tuesday at about 1,326.30 to the US dollar at the official Nigerian Foreign Exchange Market, while the dollar exchanged for between 1,385 and 1,410 naira in the parallel market.

The official rate represents the average of transactions recorded in the formal foreign exchange market.

In the parallel market, traders bought dollars at around 1,385 naira and sold at about 1,410 naira, though rates vary depending on the dealer, location and transaction size.

The gap between the two markets is notable. At the parallel market selling rate of 1,410, the dollar trades about 83.70 naira higher than the official rate.

For someone buying dollars at that parallel rate, 100 dollars would cost roughly 141,000 naira, while 1,000 dollars would need about 1.41 million naira.

The naira has remained relatively steady around the official market in recent sessions, with the latest data showing it at the same rate on September 14.

Despite this stability at the official market, the continued gap between official and parallel rates shows differences in how foreign currency is supplied, demanded and accessed in the two markets.

Exchange rates shift throughout the day as dollar supply and market demand change.

As of Tuesday, the dollar sat at approximately 1,326.30 naira at the official market compared with 1,385 to 1,410 naira in the parallel market.