Naira Records Significant Gains as Dollar Crashes in Parallel Market
The Nigerian currency has demonstrated impressive resilience in recent trading sessions, with the United States dollar experiencing a substantial decline in the parallel foreign exchange market. According to market reports from Tuesday, February 3, 2026, the dollar has plummeted by a significant N50 against the naira, marking one of the most notable currency movements in recent months.
Parallel Market Traders Confirm New Exchange Rates
Black market traders operating in Nigeria's parallel foreign exchange market have released updated buying and selling rates that reflect the dollar's dramatic fall. Market participants confirmed that the dollar now trades at N1,450 for buying and N1,470 for selling, representing a substantial depreciation from previous levels.
One trader, identified as Abdullahi, provided detailed insights into the current market situation. "Today, Tuesday, February 3, I purchased the dollar at N1,450 and sold it at N1,470," he explained. "The euro and British pound have also experienced minor adjustments in response to the naira's appreciation."
European Currencies Show Minor Adjustments
The naira's strengthening has created ripple effects across other major currency pairs. The euro currently trades at a buying rate of N1,705 and a selling rate of N1,745, while the British pound sterling exchanges at N1,985 for selling and N2,015 for buying.
These new rates represent a significant improvement when compared to exchange rates recorded at the beginning of the year. On January 5, 2026, the dollar exchanged for N1,485 to buy and N1,500 to sell, while the euro traded at N1,710 to buy and N1,735 to sell. The British pound maintained similar levels at N1,985 to buy and N2,015 to sell.
Official Market Presents Different Picture
While the parallel market celebrates the naira's gains, the official Nigerian Foreign Exchange Market (NAFEM) tells a slightly different story. According to BusinessDay reports, the naira weakened against the US dollar in NAFEM on Monday, February 2, falling by N3.81 or 0.27% to N1,390.36/$1 from N1,386.55/$1 recorded the previous Friday.
Despite this minor setback, the local currency remained within expected trading ranges, demonstrating overall stability in the official market. As of February 2, 2026, the naira exchanged at various rates against international currencies:
- CFA: N2.52
- Yuan/Renminbi: N200.20
- Danish Krone: N220.14
- Euro: N1,644.52
- Yen: N8.96
- Riyal: N370.73
- South African Rand: N86.61
- SDR: N1,921.34
- Swiss Franc: N1,785.49
- Pounds Sterling: N1,899.51
- US Dollar: N1,390.36
Economic Experts Predict Continued Naira Strength
Financial analysts and economic experts have expressed optimism about the naira's future performance. Yemi Kale, Chief Economist at the Africa Export-Import Bank (Afreximbank), recently projected that the naira could trade between N1,350 and N1,450 per US dollar throughout 2026.
Kale presented these forecasts during his keynote address at the FirstBank Nigeria Economic Outlook 2026 event, where he outlined scenario-based predictions for the USD/NGN exchange rate. His analysis considered multiple factors including oil prices, foreign-exchange inflows, inflation trends, and policy consistency.
The current market dynamics suggest that the Nigerian currency is experiencing one of its strongest periods in recent weeks, with expectations of continued positive performance in the coming months. Market observers attribute this strength to various economic factors and policy measures that have contributed to improved currency stability.
