The Nigerian Naira showed a modest but steady performance against the United States Dollar during early trading on Thursday March 12 2026. Data from the Nigerian Foreign Exce Market and informal trading channels indicate that the local currency is maintaining relative balance as the mid week trading session progresses.
In the official market window the naira opened at about 1392.03 per dollar in the early hours of trading. Market activity during the morning saw the exce rate experience mild pressure which pushed it to a high of around 1400.07 per dollar before balancing at approximately 1399.57 per dollar by about 3.30 AM West Africa Time.
Analysts say the performance follows a period of improved market confidence after the Central Bank of Nigeria cleared a large portion of foreign exce backlogs. The move has helped create a more transparent trading environment for authorised dealers while supporting the willing buyer willing seller system now used in the official market.
Turnover in the market remains healthy as manufacturers and institutional investors continue to access foreign exce to meet business obligations. Economists believe the improved market structure has reduced uncertainty and encouraged more predictable exce rate movements.
In the parallel market the dollar continues to trade close to the official rate reflecting stronger alignment between both segments of the market. Traders report that the dollar is currently exced between 1408 and 1418 naira in cities such as Lagos and Abuja.
The gap between the official and parallel market rates remains relatively narrow estimated at around 1 percent to 1.3 percent. Currency traders say speculation and hoarding have remained limited largely because foreign exce is increasingly available through licensed Bureau De Ce operators.
Several economic factors are supporting the naira balance including strong external reserves estimated at more than 50 billion dollars improved inflation control and attractive interest rates. Analysts also note that increased domestic refining capacity is reducing the demand for foreign exce previously required for large scale fuel imports.
Leave a comment