Naira strengthens to N1,510/$ in official, parallel markets

For the first time in nearly two years, the official and parallel-market exchange rates for the naira converged on Thursday.

The naira was quoted at N1,510 in the parallel market on Thursday, matching the official closing rate of N1,510/$ from Wednesday. This marks the first time both rates have been aligned since June 2023.

The black market rate dropped following the Central Bank of Nigeria’s (CBN) decision to extend its dollar sales to Bureau De Change Operators (BDCs) until May 30, 2025. Additionally, the CBN kept its benchmark interest rate at 27.5% on Thursday.

With the current black market rate, the naira has gained N155/$ or 10.3% year-to-date, compared to the N1,665 rate at the start of the year, according to data from street traders and online platforms tracking foreign exchange (FX) rates.

In the Nigerian Foreign Exchange Market (NFEM), the official market, the naira has remained steady at N1,510 for the past two trading days, contributing to the convergence of exchange rates.

CBN Governor Olayemi Cardoso stated on Thursday that the exchange rate differential between the official market and the retail bureau has narrowed to less than one percent, based on the latest data.