The naira closed Monday, 12 January, on a steady note against the United States dollar, maintaining the same levels recorded in the previous session across both the official and black-market segments, according to data from the NGNToday platform.
At the official foreign exchange window, the naira traded at N1,419 per dollar, unchanged from the prior day’s closing rate. Similarly, activity in the parallel market showed stability, with the dollar exchanging at N1,495, reflecting no movement from the previous session.
This flat performance signals a short-term consolidation in the foreign exchange market following recent gains by the local currency. Market analysts note that the naira’s ability to hold these levels suggests improved balance between dollar demand and supply, particularly at the official window where recent reforms and tighter controls have enhanced transparency.
The narrowed volatility between sessions indicates that speculative pressures may have eased temporarily, allowing the market to adjust to prevailing liquidity conditions.
While the spread between the official and black-market rates remains wide, the absence of fresh depreciation in the parallel market is seen as a positive signal for confidence, especially among importers and small businesses that rely heavily on the informal FX channel.
From a trend perspective, the naira’s steadiness reflects cautious optimism among traders, who appear to be awaiting clearer policy signals and sustained dollar inflows before taking aggressive positions. The current pricing also suggests that recent appreciation has been absorbed by the market without triggering immediate corrections.
However, analysts warn that this stability may be fragile. External factors such as global dollar strength, oil revenue performance, and foreign portfolio flows will continue to shape near-term movements. Sustained appreciation, they argue, will depend on consistent FX supply and effective coordination between fiscal and monetary authorities.
For now, Monday’s data point to a market in pause mode rather than reversal, with the naira holding its ground at N1,419 officially and N1,495 at the black market, as traders watch for the next catalyst.
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