The Nigerian Naira strengthened further against the United States dollar at the official foreign exchange market, with the latest indicative rate putting the dollar at about ₦1,341.66 on Friday.
The development follows the naira’s rise to a five-month high of ₦1,338.59 per dollar on Thursday, Aug. 27, amid improved dollar liquidity and rising external reserves.
Official-market data had put the exchange rate at ₦1,343.59 per dollar on Wednesday before the naira recorded further gains the following day.
However, the ₦1,341.66 rate is an indicative figure, while the Nigerian Foreign Exchange Market (NFEM) closing rate for Friday will depend on trading activities and may differ from live market quotations.
In the parallel market, the dollar remained higher, with AbokiFX-related market reports quoting the currency at about ₦1,400 for buying and ₦1,410 for selling on Thursday.
At the quoted parallel-market selling rate, Nigerians seeking to buy $1 would require about ₦1,410, while those selling $1 could receive approximately ₦1,400, depending on the dealer and location.
The difference between the indicative official rate of ₦1,341.66 and the parallel-market selling rate of ₦1,410 is about ₦68 per dollar.
The recent strengthening of the naira has coincided with an improvement in Nigeria’s foreign exchange reserves, which were reported to have risen to about $53.34 billion, described as an 18-year high.
Improved dollar liquidity has also helped ease pressure on the local currency, according to the report.
The exchange rate remains significant for importers, travellers, students paying overseas tuition and businesses with dollar obligations, as fluctuations affect the naira cost of foreign transactions.
However, the actual rate available to customers may differ from the NFEM benchmark or parallel-market quotation.
Banks, Bureau de Change operators and other authorised dealers may apply different rates depending on the transaction, amount, location and prevailing market conditions.
Parallel-market rates are unofficial and may change several times during the day. The Central Bank of Nigeria does not recognise the parallel market as an official foreign exchange market.
As of the morning of Aug. 28, the latest indicative market data therefore put the dollar at about ₦1,341.66, while parallel-market quotations remained around ₦1,400 to ₦1,410 per dollar.
