Naira Strengthens to ₦1,590/$ in Parallel Market — Gap with Official Rate Narrows

Date: June 13, 2025

By: grassrootsmirro

The Nigerian Naira appreciated to ₦1,590 per dollar in the parallel (black) market on Thursday, strengthening by ₦20 from ₦1,610/USD the previous day. Meanwhile, the official exchange rate dipped slightly to ₦1,554/USD, bringing the spread between both rates down to ₦36.

This marks a continued trend of stabilization and convergence in Nigeria’s foreign exchange markets, driven by market confidence and ongoing Central Bank interventions.

Parallel Market Rate Improves

According to updates from key market sources, the naira traded at ₦1,590 per USD in the parallel market on Thursday, a significant boost from ₦1,610 recorded on Wednesday, June 12.

This is the third time since February 2024 that the naira has traded within the ₦1,500 range in the parallel market. 

 Official Market Movement

At the Nigerian Foreign Exchange Market (NFEM), the naira traded slightly lower at ₦1,554 per dollar, compared to ₦1,545/USD on Wednesday — a ₦9 drop.

Despite this dip, the overall gap between the official and parallel rates narrowed sharply, from a previous ₦65–₦70 spread to just ₦36.

Exchange Rate Comparison

Market Type	Exchange Rate (₦/USD)	Daily Change
Parallel Market	₦1,590	+₦20
Official (NFEM)	₦1,554	–₦9
Rate Spread	₦36	↓ (Tightened)

What’s Driving the Naira’s Strength?

Several factors contribute to the recent appreciation of the naira:

Improved Dollar Liquidity

The Central Bank of Nigeria (CBN) has been enhancing access to foreign currency across both official and retail segments.

Reduced Speculation

With stronger regulation and FX code enforcement, speculative demand in the black market appears to be declining.

Market Confidence

The market is responding positively to efforts by the CBN to unify the exchange rates and create a more transparent and stable FX system.

What This Means for Nigerians

• Importers & Businesses: Reduced pressure on sourcing FX from the black market.
• Nigerian Economy: A narrowing spread helps reduce arbitrage and builds investor confidence.
• Policy Makers: Shows that reforms and interventions are beginning to yield results.

Looking Ahead

While this trend is encouraging, analysts advise cautious optimism:

• Will the naira sustain this strength?
• Will the CBN continue its current FX policies or introduce new reforms?
• How will global oil prices and inflows from foreign investors affect liquidity?

The coming weeks will be crucial in determining whether this is a temporary rally or a sustainable climb.

The naira's rally to ₦1,590/$ in the parallel market and the narrowing gap with the official rate is a positive development for Nigeria’s economy. It highlights improving liquidity and confidence in the FX market. If sustained, this could bring much-needed stability to pricing, trade, and international transactions.