The Nigerian naira recorded a mixed performance against the United States dollar on Tuesday, July 7, 2026, remaining largely stable in the official foreign exchange market while posting a slight decline in the parallel market. According to data from the Nigerian Foreign Exchange Market (NFEM), the local currency closed at ₦1,367.29 per dollar, extending the relative stability witnessed in recent weeks. This performance reflects sustained liquidity management efforts by the Central Bank of Nigeria (CBN) and ongoing reforms to improve transparency in the country's foreign exchange market.
Parallel Market Sees Dollar Climb to ₦1,400
In the parallel market, the dollar traded at approximately ₦1,400, indicating a modest weakening of the naira compared to the previous trading session. Currency traders attributed the movement to persistent demand for foreign exchange from individuals and businesses unable to access sufficient dollars through official channels. Despite the slight divergence between the two markets, the spread remained relatively contained at about ₦33 per dollar, significantly lower than the wide disparities observed before the recent foreign exchange reforms. Analysts view the narrowing gap as a sign of improving price discovery and greater confidence in the official market, although demand pressure in the informal market continues to persist.
Official and Parallel Market Rates at Close
At the close of trading, the exchange rates stood at ₦1,367.29 per US dollar in the official NFEM window and about ₦1,400 per US dollar in the parallel market. The official window has continued to attract a larger share of foreign exchange transactions as the CBN maintains policies designed to boost liquidity, improve market efficiency, and encourage greater participation by investors.
Dollar Supply and Oil Earnings to Shape Naira's Outlook
Foreign exchange experts say the naira's short-term direction will largely depend on the availability of dollar liquidity across the banking system, inflows from crude oil exports, foreign portfolio investments, and remittances from Nigerians in the diaspora. They also noted that the CBN's interventions, alongside broader macroeconomic policies, will remain critical in sustaining exchange rate stability. Analysts added that demand from manufacturers, importers, and other businesses requiring foreign currency for raw materials, equipment, and international transactions will continue to influence market movements. While the official market has shown resilience, they warned that any significant drop in foreign exchange inflows or increase in demand could exert fresh pressure on the local currency in the coming weeks.
