Naira Holds Firm as Dollar Trades Around ₦1,470 in Interbank Market

Naira Holds Firm as Dollar Trades Around ₦1,470 in Interbank Market

The Nigerian naira continued to show relative stability today, with the U.S. dollar trading at about ₦1,470.28 in the interbank (official) foreign exchange market.

While this interbank rate remains a benchmark for many formal transactions, parallel (black market) rates remain significantly higher. In the black market, one dollar is currently quoted at ₦1,492 for sale and ₦1,500 for purchase.

Over recent weeks, the naira has posted modest gains against the dollar, driven in part by increased foreign exchange inflows and foreign investment interest.

The Central Bank of Nigeria (CBN) has intervened periodically in the FX market, divesting dollars to bolster liquidity and cushion volatility.

The gap between the interbank and black market rates continues to underscore underlying pressures in formal forex channels, including limited access, regulatory restrictions, and supply constraints.

Importers and those relying on foreign supplies may continue to feel pressure, as the disparity between official and black market rates drives up cost of purchases and hedging.

Those holding U.S. dollars may benefit from arbitrage opportunities, but must navigate risks associated with liquidity and legal constraints.

Unless there is a substantial shock for example in oil prices, remittances or capital flows  the naira is likely to oscillate in the ₦1,450–₦1,550 in coming weeks.