The naira on Tuesday showed relative stability against the U.S. dollar in the early hours of trading, maintaining a narrow trading range across both the official and parallel foreign exchange markets.
At the official market, trading on the Nigerian Foreign Exchange Market (NFEM) opened at about N1,424.24 to the dollar.
Data from the trading platform indicated mild intraday movements, with the exchange rate trading as high as N1,425.56 and as low as N1,422.99 during the morning session.
The performance aligns with the previous week’s closing figures, as the Central Bank of Nigeria (CBN) recorded a weighted average exchange rate of N1,424.27 on Jan. 9.
Analysts attributed the current stability to a period of consolidation, as market participants assess recent liquidity injections and signals from monetary authorities.
At the parallel market, the naira exchanged between N1,450 and N1,465 to the dollar for cash transactions, depending on location and transaction volume. This indicates a persistent, though gradually narrowing, gap between the official and unofficial markets.
Bureau De Change (BDC) operators in Lagos and Abuja reported moderate demand for foreign currency, noting that speculative pressures had eased compared with the volatility recorded toward the end of 2025.
They, however, said demand remained supported by travel-related expenses and school fee payments.
Looking ahead, economic analysts said the naira’s performance in the coming weeks would depend largely on sustained dollar supply to the NFEM and developments in global crude oil prices.
They also noted that the level of the nation’s foreign reserves would remain a key factor supporting the local currency.
Although the current exchange rates suggest a modest recovery from the highs recorded in December 2025, analysts warned that the market remains sensitive to changes in domestic inflation data and international trade dynamics.