The Nigerian Naira opened trading on Tuesday at an average of ₦1,345.47 per dollar in the official market, extending its steady run as efforts to align exchange rates continue.

What happened

At the Nigerian Foreign Exchange Market (NFEM), the currency recorded a slight appreciation during early trading.

It briefly touched ₦1,345.87 per dollar before stabilising, reflecting consistent interbank activity and steady demand.

Analysts say the performance is tied to ongoing reforms by the Central Bank aimed at improving liquidity and ensuring transparent pricing.

Parallel market trend

In the parallel market, the Naira maintained relative stability across major cities including Lagos, Port Harcourt and Kano.

The dollar traded between ₦1,390 and ₦1,405, with the gap between both markets remaining largely unchanged.

Traders noted that volatility has reduced compared to previous periods, offering more predictability for users of the informal market.

What is driving stability

Market observers attribute the trend to improved investor confidence, stronger external reserves and increased dollar inflows.

These factors have helped ease pressure on the local currency while supporting gradual convergence between official and parallel rates.

The bigger picture

For businesses and households, the current rates point to a period of relative calm.

While global dollar strength still poses a risk, the Nigerian market continues to meet demand without major disruptions, supporting smoother transactions in the near term.