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Naira Strengthens in Parallel Market as Gap With Official Rate Narrows

Published by Samuel Ayomide on March 24th, 2026.

The Nigerian currency recorded a modest gain in the parallel market, appreciating to N1,395 per dollar, an improvement from the N1,405 rate observed in the previous week.

Despite this positive movement on the streets, the naira weakened slightly within the official trading window. Data released by the Central Bank of Nigeria showed that the currency closed at N1,383 per dollar in the Nigerian Foreign Exchange Market, compared to N1,362 recorded days earlier.

This shift indicates a depreciation of N11 in the official segment, even as the informal market reflected a stronger performance. Analysts say the mixed trend highlights ongoing volatility in the foreign exchange space, driven by demand pressures and liquidity constraints (according to The PUNCH).

A notable development, however, is the narrowing gap between the two markets. The difference between the parallel and official exchange rates has reduced significantly to N12 per dollar, down from N43 recorded last week.

Economic observers note that the reduced spread may signal improved market alignment and better price discovery across segments. Reports from The Guardian also suggest that recent policy adjustments and increased oversight in the forex market may be contributing to the convergence.

While the appreciation in the parallel market offers some relief to traders and importers, experts maintain that sustained stability will depend on stronger dollar inflows and consistent monetary policy direction.