Naira Accelerates Gains in Official and Parallel Windows After Dollar Hit 7-Day High
Published 23 Apr 2026 at 8:55 AM by Pascal Oparada
The Nigerian currency, the naira, has shown notable appreciation in both the official and parallel foreign exchange markets, following a period of volatility. In the official market, the naira rose to N1,348 per dollar, marking a slight gain from the previous day's rate of N1,350. This improvement is attributed to enhanced dollar supply and strategic interventions by the Central Bank of Nigeria (CBN), which have bolstered stability in the currency market.
Official Market Performance and Dollar Supply Dynamics
Data from the Central Bank of Nigeria reveals that the FX spot rate fluctuated between an intraday low of N1,340 and a high of N1,350 against the US dollar. This range indicates a more stable trading environment at the Nigerian Foreign Exchange Market (NFEM), driven by increased dollar availability. According to reports, the interbank supply at NFEM dropped to N66.084 million across 87 deals, down from N91.866 million across 106 deals recorded the previous day. This reduction in FX payment requests suggests a easing of pressure on the currency, contributing to the naira's gains.
Parallel Market Rebound and Authority Interventions
In the unofficial parallel market, the naira also strengthened, selling at N1,395 per dollar, up from N1,400 the day before. This rebound is linked to sustained FX releases by authorities into the currency market, which have helped curb speculative activities and support the local currency. The coordinated efforts between the CBN and other financial regulators have been crucial in maintaining market confidence and preventing excessive depreciation.
Global Oil Price Volatility and Geopolitical Factors
Meanwhile, global oil prices experienced significant fluctuations on Wednesday, April 22, 2026, amid ongoing tensions between the United States and Iran. President Donald Trump announced an extension of a ceasefire with Iran, pending progress in peace talks, while maintaining a blockade on Iranian ports until Tehran presents a unified proposal. This geopolitical uncertainty led to wild swings in oil markets, with the global benchmark wholesale price dropping to $97.60 per barrel before rising again to $100 per barrel due to reports of ship attacks in the Strait of Hormuz.
Experts note that energy markets have remained volatile since the US and Israel attacked Iran on February 28, with Tehran threatening to target vessels in critical shipping lanes. The initial two-week ceasefire was set to expire on April 22, 2026, but Trump did not specify a new deadline, adding to market unpredictability. In a statement on Truth Social, he mentioned that the Iranian government has been significantly weakened, and the US will refrain from further attacks after Pakistan requested more time for Iran to agree to a deal.
Naira's Resilience and Regional Standing
Despite these global disruptions, the naira has demonstrated remarkable resilience, emerging as one of Africa's strongest currencies in 2026. It now ranks as the second-best performing African currency against the US dollar year-to-date, trailing only the Zambian kwacha. Lukman Otunuga, Head of Market Research at FXTM, highlighted the naira's unexpected strength in a recent statement, noting its appeal to investors worldwide amid geopolitical tensions and market swings.
This performance underscores Nigeria's improving economic fundamentals and the effectiveness of monetary policies in stabilizing the currency. As authorities continue to monitor FX flows and global oil dynamics, the naira's gains are expected to support broader economic recovery efforts in the country.
