Naira Posts Mixed Performance Across Official, Parallel Markets

Lagos State – The naira recorded a mixed performance against the United States dollar across the official Nigerian Foreign Exchange Market and the parallel market on Wednesday, as traders continued to monitor foreign exchange liquidity and demand.

The currency held largely steady on the official window while trading at a wider spread on the parallel market, reflecting continued demand pressure outside formal channels even as the Central Bank of Nigeria maintains close monitoring of both windows.

Market watchers say the naira’s near term direction will continue to hinge on foreign currency inflows, oil revenue receipts and the pace of demand from importers, particularly amid renewed global oil price volatility tied to the escalating United States Iran conflict.

The mixed performance comes as Nigerian equities have separately continued to attract strong investor interest, with the stock market recording some of its best returns globally so far this year, aided by improved sentiment toward reforms and market liquidity.

Currency analysts say sustained dollar inflows from remittances and portfolio investment will be critical to narrowing the persistent gap between the official and parallel market rates in the coming months.

The Central Bank of Nigeria has not signalled any imminent policy shift, with traders expecting the current trading band to hold in the near term barring a significant change in oil revenue or global market conditions.