Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian currency continued its strong performance against the US dollar in the parallel market, commonly referred to as the black market, narrowing the exchange rate disparity between official and unofficial markets.

On Wednesday, July 16, the naira closed at N1,535 per dollar in the parallel market, marking a gain of N8 or 0.5% from its previous rate of N1,545 before Monday's national holiday declared to mourn former President Muhammadu Buhari.

In contrast, at the Nigerian Foreign Exchange Market (NFEM), which is the official market, the naira experienced a slight depreciation, settling at N1,530.25 per dollar on Wednesday.

This represents a 0.7% drop in value compared to Monday’s rate of N1,518.88, according to data from the Central Bank of Nigeria (CBN).

Earlier this week, the naira had peaked at N1,518.88 per dollar in the NFEM, reaching its highest level since March 14, 2025, when it closed at N1,517.93 per dollar, supported by increased FX liquidity and reduced demand for foreign exchange.

With the latest exchange rate movement, the difference between the official and unofficial market is now just N5 from a high of over N50 at the start of the year

In the official market, the Nigerian currency fell against the pound sterling in the same market window at midweek by N11.62 to close at N2,053.76/£1 versus the preceding session’s N2,042.14/£1.

While against the euro, it lost N4.56 to trade at N1,779.23/€1 compared with the N1,774.67/€1 it was exchanged in the previous trading day.

Abudulahhi a BDC trader, told Legit.ng that there is changes in the market due to less demand for dollars.

"Most of here hardly make sales for now, the market is a little dry. My dollar I sell at N1,537 and euro and pound at N1,780 and N2,125 respectively."

Meanwhile, CSL Stockbrokers in its H2 2025 Outlook report has revealed that the CBN injected $4.1 billion into the foreign exchange market in the first half of 2025, Punch reports.

Despite the wins the defence has brought for naira, CSL express concerns about the sustainability of the strategy, citing challenges such as weak oil earnings, subdued foreign portfolio investments, and uncertainties in external financing.

Earlier, Legit.ng reported that Nigeria's foreign reserves have been on the rise, and it is now at the highest level in three months

The most recent figures from the CBN reveal that the country’s foreign exchange reserves have risen by more than $400 million.

This boost in reserves is notable, as it strengthens the CBN’s capacity to support the naira in the currency markets.

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Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng