The Nigerian naira recorded a modest appreciation against the US dollar at the official foreign exchange market on Tuesday to close at N1,374.50/$1, strengthening by N4.00, or 0.29%, from N1,378.50/$1 recorded the previous trading day.
The parallel market also showed relative stability, with the naira trading at N1,411.00/$1, a marginal appreciation from N1,411.33/$1 on Monday.
The spread between the official and parallel market rates narrowed to about N36.50, reinforcing signs of increasing convergence.
Other major currencies traded largely unchanged in the parallel market. The British pound held steady at N1,865.00/£1, while the euro strengthened slightly to N1,597.00/€1 from N1,597.33/€1. The Canadian dollar remained unchanged at N1,055.00/C$1.
Nigeria’s external reserves also continued their upward trend, rising to $52.025 billion as of July 20, compared with $51.943 billion recorded on July 17, representing a 0.16% increase. The steady growth in reserves is expected to strengthen the Central Bank’s capacity to support the foreign exchange market, meet external obligations, and maintain adequate import cover.
The latest currency movements suggest that foreign exchange liquidity has continued to improve, supported by the CBN’s market interventions, stronger oil export receipts, and sustained diaspora remittance inflows.
Despite the recent stability, analysts say the outlook for the naira will continue to depend on key factors including global crude oil prices, foreign portfolio investment inflows, inflation trends, and the Central Bank’s monetary and foreign exchange policies
