The naira exchange rate at the parallel markets closed stronger against the rate in the official market as more dollar inflows hit markets.
The naira yesterday closed at N1,450/$ at the parallel markets, stronger than N1,475/$ it exchanged in the official window where banks and other financial institutions carry out transactions.
The naira had on Wednesday closed around N1,475/$ at the parallel market, sustaining relative stability at the official window.
At the parallel markets dominated by bureau de change operators and unofficial FX transactions, many operators traded at huge losses.
A Bureaux De Change (BDC) trader based in Ikeja, Lagos, Mohammed Gabi, said many FX dealers lost huge funds after selling below purchase rates as exchange rate gap narrowed.
“Many BDC operators sold dollar below the purchasing amount as they feared further losses. We expect the trend to continue in the weeks ahead. Also, the expected dollar inflows to the economy will help strengthen the naira position against the dollar,” he said.
Industry source said there has been increased dollar liquidity in the parallel market, which took many black market dealers unawares.
“I can tell you that a lot of dollars came into the parallel market, forcing those holding back dollars to offload their funds with fear. If the trend, continues, we could see dollar exchanging around N1,400/$ as projected in many quarters,” the source said.
Analysts at Commercio Partners, attributed the rally and gradual narrowing of the exchange rate gap to a combination of stronger demand for the naira, reduced speculative trading, and improved foreign reserves.
Head of Research at Commercio Partners, Ifeanyi Ubah, expressed optimism that the positive sentiment would be sustained in the near term, supported by increasing external buffers.
“Nigeria’s rising external reserves are reflecting a healthier external position for the country. With reserves strengthening, speculative activity subsiding, and oil earnings supporting inflows, many market watchers believe the naira’s current rally has a stronger foundation compared to previous cycles of volatility,” he said.
The local currency rebound is being driven by a combination of stronger demand for the naira, reduced speculative trading, and rising foreign reserves now at $43.05 billion.
CBN Governor, Olayemi Cardoso announced that gross external reserves remained robust at $43.05 billion on September 11, 2025, compared with $40.51 billion at end-July 2025 with an import cover of 8.28 months.
“Similarly, the second quarter 2025 current account balance recorded a significant surplus of $5.28 billion compared with $2.85 billion in first quarter of 2025,” Cardoso stated during the 302nd monetary policy committee meeting held this week in Abuja.
Analysts insist that the forex reforms instituted by the Cardoso-led CBN are stabilizing the exchange rates and improving overall health of the economy.
The reforms were instituted to entrench transparency, accountability and improve dollar access in the foreign exchange market.
President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said the naira gains showed the level of creativity the Central Bank puts in ensuring that more forex flows into the economy and remain accessible to businesses
