Naira Holds Firm Against Dollar as Forex Market Remains Stable

The Nigerian naira remained relatively stable against the United States dollar on Monday as traders monitored market conditions.

Data from the Nigerian Foreign Exchange Market (NFEM) showed the currency trading at ₦1,357.26 per dollar.

Notably, the exchange rate reflected a slight improvement from levels above ₦1,360 recorded earlier in June.

As a result, the local currency continued its modest recovery at the official window.

Meanwhile, activity remained steady in the parallel market.

Currency dealers quoted the dollar at about ₦1,388 for buying and ₦1,398 for selling on June 8.

However, rates varied across locations due to differences in demand, transaction size, and forex availability.

Despite these variations, the gap between official and parallel market rates remained relatively narrow.

Furthermore, analysts linked the naira’s performance to ongoing reforms in the foreign exchange market.

They noted that improved liquidity and better price discovery have reduced pressure on the local currency.

Recent market data showed that the naira gained about ₦3.79 at the official window.

Specifically, the NFEM rate improved from ₦1,361.05 to ₦1,357.26 per dollar within the period under review.

In addition, financial experts said several factors would influence exchange rate movements in the coming days.

These include foreign portfolio investments, crude oil earnings, and overall market liquidity.

Likewise, the volume of foreign exchange inflows will remain a key determinant of the naira’s direction.

Consequently, traders continue to watch economic indicators closely.

Based on prevailing rates, $100 exchanged for approximately ₦135,726 at the official NFEM market.

At the parallel market selling rate, the same amount traded for about ₦139,800.

For now, the naira continues to show resilience as authorities push measures aimed at strengthening the foreign exchange market.

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