October 1, 2025
The Nigerian naira posted mixed performances between the parallel and the official foreign exchange window on Wednesday, October 1, 2025
While the naira strengthened a bit at the parallel market, closing at ₦1,505 as against the ₦1,500 per US dollar, it traded earlier in the week, reflecting renewed activity among independent dealers and slightly improved dollar supply.
At the Nigerian Foreign Exchange Market, the naira experienced a mild depreciation, finishing at ₦1,478 per US dollar, down from ₦1,480.15 it traded the previous day.
This culminated in the gap between the parallel and official rates narrowing down to about ₦22, from around ₦25 earlier.
READ MORE; Naira Remains Strong As Investors Liquidate Dollar Positions
As for other major currencies, the pound sterling traded near ₦2,075, while the euro exchanged around ₦1,665 in the parallel market,
While in the official window, the pound was quoted at ₦2,030.50 and the euro at ₦1,620.45.
(These movements are reflection of the modest divergence between the official and informal segments of the FX market.)
Market watchers attribute the slight recovery in the street market to improved dollar inflows from diaspora remittances, independent supply channels, and seasonal trade receipts.
Also, the demand pressures remain strong many corporates, importers, students, and travellers still depend on the parallel market to meet obligations not fully serviced by the formal window.
READ MORE; Naira Rises To N1,484/$ at Official Market
Meanwhile, the official market continues to be cushioned by Central Bank of Nigeria, CBN, interventions, which help moderate volatility. The narrowing spread suggests that recent policy tweaks and FX reforms may be modestly aligning the two markets.
Looking ahead, traders expect the dollar to trade in the ₦1,495 to ₦1,505 range in the parallel market, assuming stable dollar supply. The CBN is also expected to maintain targeted FX interventions aimed at reducing sharp swings and improving market confidence.
While the short-term dynamics are encouraging, sustainable stability of the naira will depend on structural measures.
