The naira closed the week relatively stable on Saturday, holding near mid-October levels as the official exchange rate hovered around ₦1,460 per US dollar while the parallel market continued to trade notably weaker, averaging between ₦1,495 and ₦1,500 to the dollar.
Data from the Nigerian Foreign Exchange Market (NFEM), also known as the Investors’ and Exporters’ (I&E) window, showed that the official rate settled at ₦1,460.49 per dollar, with the Central Bank of Nigeria’s indicative benchmark around ₦1,458. In contrast, parallel market dealers quoted the greenback between ₦1,495 and ₦1,515, with a street average close to ₦1,500. Most retail currency boards on Saturday displayed a selling rate of ₦1,500 and a buying rate near ₦1,485.
Traders said the official window recorded mild intraday movement as modest inflows kept the rate within a narrow band, while cash scarcity in informal channels sustained higher quotes across retail locations. The persistent gap between the official and parallel markets, analysts noted, reflects uneven dollar liquidity — with electronic interbank trades absorbing institutional flows even as physical cash demand remains unmet.
“The divergence shows that while official channels appear relatively calm, retail and travel-related dollar demand is still high,” one Lagos-based dealer said. “Until cash supply improves, the street rate will continue to price in scarcity.”
The continued spread between both markets underscores a familiar two-speed foreign exchange structure. While banks and exporters transact at CBN-supervised levels, many importers, small traders, and travellers rely on the parallel market, where availability dictates price.
For businesses and individuals sourcing cash dollars, this means continued exposure to higher retail costs despite relative stability in official fixings. Analysts say the gap is likely to remain under focus as the Central Bank monitors liquidity interventions and seeks to align market dynamics more closely.
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