The Nigerian naira closed the trading session for Sunday, 12 January, on a relatively stable note against the United States dollar, maintaining the same values recorded in the previous trading window.
Meanwhile a data obtained from the NGNToday platform indicate that the official exchange rate remained unchanged at N1,419 per dollar, while the black market rate also held steady at N1,495 per dollar, reflecting a continued pause in volatility across both segments of the foreign exchange market.
This stability follows the modest appreciation recorded on Friday, 10 January, when both the official and parallel market rates settled at the same respective levels.
The consistency in pricing suggests a temporary equilibrium in dollar demand and supply dynamics, particularly as market participants adjust to recent monetary policy signals and improved FX liquidity management by the Central Bank of Nigeria (CBN).
At the official market, the naira’s ability to sustain the N1,419 mark underscores cautious optimism among authorised dealers. Analysts attribute this steadiness to the CBN’s sustained interventions and tighter oversight of FX transactions, which have helped narrow speculative pressures.
Additionally, improved transparency in the Nigerian Foreign Exchange Market (NFEM) continues to play a role in stabilising official rates, even as global economic uncertainties persist.
Meanwhile, activity in the parallel market reflected similar calm, with the dollar exchanging at N1,495. The unchanged rate points to reduced panic buying and a short-term balance between retail demand and informal supply sources.
Traders in the black market segment report slower transaction volumes, a development that often coincides with periods of rate stability.
A closer analysis of the N76 differential between the official and black market rates reveals a narrowing gap compared to earlier periods marked by extreme divergence. Although the spread remains significant, the absence of fresh depreciation pressure suggests that arbitrage opportunities are gradually shrinking, a positive signal for currency convergence in the medium term.
Market observers note that the naira’s performance over the last few sessions reflects broader macroeconomic adjustments, including improved diaspora remittance inflows, cautious import demand, and expectations surrounding fiscal reforms.
However, they warn that sustained stability will depend on consistent FX inflows, particularly from oil exports, and continued confidence in policy execution.
From a short-term outlook, the naira is expected to remain range-bound unless disrupted by external shocks or sudden shifts in dollar liquidity. Traders are also keeping a close watch on inflation data, interest rate decisions, and developments in the global oil market, all of which could influence currency movements in the coming weeks.
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