Naira Trades Mixed in Official & Parallel Markets; New Rate Prediction Looms!

Naira Trades Mixed in Official & Parallel Markets; New Rate Prediction Looms!

Sele Media Africa
Reported by Marian Opeyemi Fasesan

The Nigerian naira has been trading mixed across foreign exchange (FX) markets, showing divergent behaviour in the official window and the parallel (or black) market, even as experts predict a new rate adjustment is on the horizon.

Current Situation

• In recent times, the naira has strengthened in some segments while depreciating in others. For example, the official Nigerian Foreign Exchange Market (NFEM) rate has hovered around ₦1,500‑₦1,510 per US dollar, while the parallel market has seen the naira trading slightly weaker or at comparable levels. [1]
• In some instances, the parallel market rate even dropped below the official rate, narrowing the spread between both markets. [2]

Experts’ Predictions

• Analysts expect that because of interventions by the Central Bank of Nigeria (CBN) and policies aimed at improving foreign exchange supply, the naira could stabilize around ≈ ₦1,550‑₦1,600 per dollar, particularly under increasing FX demand. [3]
• Some projections suggest that by the end of 2025, external pressures (including import costs, demand for foreign exchange, and possibly further currency market reforms) may push the naira toward ₦1,662/$1 in the worst‑case scenarios. [3] What Factors Could Shift the Rate
• Supply of forex: Increased inflows (from remittances, exports, etc.) could help strengthen the naira or slow its depreciation.
• CBN policies: Interventions, regulation of Bureau De Change operations, forex window reforms, and transparency measures are central to currency stability. [4]
• Global macro conditions: Oil price movements, foreign capital inflows (especially portfolio investments), and global interest rate environment also play a large role.

Citations:

1. witnessngr.com: witnessngr.com/naira-strengthens-to-n1510-in-official-parallel-markets/?utm_source=chatgpt.com
2. Vanguard News: www.vanguardngr.com/2025/02/naira-hits-7months-high-appreciates-to-n1500-in-parallel-market/?utm_source=chatgpt.com
3. Independent Newspaper Nigeria: independent.ng/experts-see-naira-closing-2025-at-n1662-on-year-end-pressure/?utm_source=chatgpt.com
4. The Radar: theradar.ng/business/experts-project-naira-fx-stability-mpr-inflation-decline-fuel-price-slash-others-in-2025?utm_source=chatgpt.com

About The Author

Marian Opeyemi Fasesan

author

Marian Opeyemi Fasesan is a dynamic journalist and editorial leader committed to excellence in news reporting and storytelling. As the Managing Editor of Sele Media Africa, she ensures daily operations run smoothly while upholding the highest editorial standards. With a strong eye for detail and deep understanding of audience engagement, Marian coordinates content across platforms, guiding teams to produce compelling, timely, and credible news. Her leadership reflects the heart of Sele Media Africa’s mission—to inform, inspire, and elevate voices across the continent.

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