The Nigerian naira has stabilized in the parallel market at N1,570/$1 after fluctuating earlier in the week. Meanwhile, official rates show minor declines. Despite this relative stability, analysts warn that market forces, policy interventions, and dollar supply will continue to influence the naira’s future trajectory.
The Nigerian naira has shown signs of stabilization in the parallel market, maintaining a steady exchange rate of N1,570 against the US dollar from Wednesday through Friday, February 14, 2025. After fluctuations earlier in the week, including a slight dip to N1,565 on Wednesday, the currency now appears to be holding firm, prompting market analysts to express cautious optimism about its near-term outlook.
A Bureau De Change (BDC) operator from Wuse Zone 4, Abuja, confirmed the rate's stability, suggesting a possible temporary end to the naira’s depreciation. This follows a period of volatility in the market, but the exchange rate remains unchanged as the week comes to a close.
At the official market, however, the Central Bank of Nigeria (CBN) reported a slight depreciation. On Wednesday, the naira traded at N1,513 to the dollar, weakening slightly to N1,515 on Thursday. By Friday, the official rate stood at N1,506.87 (buying) and N1,507.87 (selling), signaling modest declines in the official market, despite continued pressures.
While the naira's performance in the parallel market stabilizes, the broader outlook remains uncertain, with ongoing challenges in foreign exchange liquidity, remittances, and economic policies. Analysts are closely watching market interventions by the CBN, which could further impact the naira’s trajectory in the coming weeks.
